Diseconomies of scale are associated with:
a. a downward sloping long-run average total cost curve.
b. an upward sloping long-run average total cost curve.
c. a horizontal long-run average total cost curve

If monetary policy moves unemployment below its natural rate, both expected and actual inflation will rise

a. True b. False Indicate whether the statement is true or false

Answer the following questions true (T) or false (F)

1. An argument in favor of the Federal Reserve adopting inflation targeting is that in the long run, the Fed can have an impact on inflation but not on real GDP. 2. A borrower defaults on a loan when he stops making payments on the loan. 3. The Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association were established by Congress in order to regulate banks that buy and sell mortgage-backed securities.