Refer to the information provided in Figure 6.2 below to answer the question(s) that follow. Figure 6.2Refer to Figure 6.2. Assume Mr. Lingle is on budget constraint AC. If the price of a beer is $5, Mr. Lingle's monthly income is

Using the money demand and money supply model, an open market purchase of Treasury securities by the Federal Reserve would cause the equilibrium interest rate to

A) not change. B) decrease. C) increase. D) increase if the economy is in a recession.

In a perfectly competitive resource market, the labor supply curve facing the single firm is

A) vertical. B) horizontal. C) downward sloping. D) upward sloping.