The reserve requirement is the tool used least frequently by the Fed because it can cause abrupt changes in the money supply.

Refer to the above figure. Mario is self-sufficient and so is Mia. Each produces 6 dishes of pasta and 4 pizzas. Mario and Mia decide to specialize and trade

After they have specialized and traded, compared to the initial situation, Mia's opportunity cost of pasta has ________ and Mario's opportunity cost of a pizza has ________. A) decreased, decreased B) decreased, increased C) increased, increased D) increased, decreased

In the year that a bakery buys a new $100,000 oven by borrowing at a real interest rate of 5 percent, the oven adds $22,000 to bread sales, depreciates by $8000, and requires $3000 in natural gas and maintenance

Since the MPK is ________ the user cost of capital, the bakery should ________. A) above, shut down the oven B) above, consider buying more ovens C) below, shut down the oven D) below, consider buying more ovens