If the Fed uses its tools to expand the money supply, bond prices will be bid down and interest rates will rise

Critics of the current system of flexible exchange rates allege that it

a. promotes inflation b. promotes unemployment c. gives central banks too little discretion over their money supplies d. restricts the growth of developing countries e. gives too much financial power to industrial countries

In the electricity generation industry, the cost per kilowatt hour of electricity declines as the capacity to generate output increases. This situation represents:

a. a poor opportunity for investors. b. constant returns to scale. c. diseconomies of scale. d. economies of scale. e. decreasing returns to scale.