Tax saving so that people spend more and firms' profits are higher

An increase in the money supply will reduce interest rates and increase the price of bonds.

a. true b. false

In general, production possibilities curves are "bowed out" because:

A) it's wasteful to produce too much of any one good. B) people generally prefer to consume goods in appropriate combinations. C) of the law of increasing opportunity cost. D) of the law of demand.