As a firm increases its output, its average total cost decreases. This is an outcome of:

Which of the following statements is true if interest rates were zero?

A) The demand for bonds increases because bonds will be a more attractive alternative to money. B) People will hold their wealth in the form of money rather than in bonds. C) Bonds and money will become perfect substitutes since both are non-interest earning assets. D) The supply of bonds will increase.

Fiscal policy is defined as changes in federal ________ and ________ to achieve macroeconomic objectives such as price stability, high rates of economic growth, and high employment

A) taxes; the money supply B) taxes; interest rates C) taxes; expenditures D) interest rates; money supply