Suppose you purchase a two-year bond that has a $450 coupon and a face value of $5,000, and immediately after you purchase the bond, new bonds are issued that are otherwise identical, except they have coupons of $375

Suppose that the implicit cost for a business was $2,000 and the explicit cost was $5,000 and that the firm sold 1,000 units of its products at $7 per item. We can conclude that the firm's

A) accounting profit was $7,000, and its economic profit was $0. B) accounting and economic profits were both $0. C) accounting profit was $2,000, and economic profit cannot be determined. D) accounting profit was $2,000, and economic profit was $0.

To increase the money supply, the Federal Reserve could

A) lower the discount rate. B) decrease income taxes. C) raise the required reserve ratio. D) conduct an open market sale of Treasury securities.