A firm operating in a purely competitive labor market has the following marginal revenue product schedule.WorkersMRP1$24222320418516614712If the wage rate decreases from $17 to $13, by how much will the firm expand employment?

In deciding how much money to hold, individuals

A) must understand the velocity of the money and its role in the economy. B) compare the inflation rate with the market interest rate. C) base their decisions on what others are doing. D) evaluate the relative costs and benefits of holding money versus other assets.

Bank reserves are increased by

A) Treasury currency outstanding. B) Treasury cash holdings. C) Federal Reserve capital. D) currency in circulation.