The Keynesian mechanism through which monetary policy affects the price level, real GDP, and employment depends on the impact of the:

A balance sheet for the central bank of Pecunia is shown below: Central Bank Balance Sheet Assets Liabilities Foreign assets $1,000 Deposits held by private banks $500 Domestic assets $1,500 Currency in circulation $2,000 Please write the

new balance sheet if the bank sells $100 worth of foreign bonds for domestic currency.

The long-run supply curve in a constant-cost industry is linear and

A) upward-sloping. B) downward-sloping. C) horizontal. D) vertical. E) could have any constant slope.