Changes in the capital stock occur ________, and changes in the amount of labor that firms employ occur ________

If demand increases while supply decreases, then the equilibrium price

A) always increases. B) always decreases. C) may increase, decrease, or stay the same. D) never changes.

If the Fed wishes to increase the interest rate, it can do so by

a. selling bonds b. buying bonds c. increasing the money supply d. setting a higher prime lending rate e. encouraging the public to buy bonds