Consider Larry's decision to go to college. If he goes to college, he will spend a total of $120,000 on tuition, $30,000 on room and board, and $3,500 on books over four years. If he does not go to college, he will earn $30,000 annually working in a store and spend $7,000 on room and board each year. Larry's cost of going to college is

When the economy is at its equilibrium GDP level, all of the following will occur, except:

A.  Aggregate expenditures = GDP B.  Inventories will be zero C.  Saving equals planned investment D.  There are no unplanned changes in inventories

When the Federal Reserve acts to tighten money and credit in the economy, it is trying to reduce the ________.

A. discount rate B. unemployment rate C. target federal funds rate D. inflation rate