Which of the following is responsible for the Fed's daily activity in financial markets?

If velocity is constant then targeting the money supply and nominal GDP is

A) effectively an interest rate target. B) effectively a real GDP target. C) effectively the same thing. D) inherently inconsistent.

Which of the following is FALSE?

A) A consumer is maximizing total utility when he or she gets the same amount of marginal utility from the last dollar spent on each good purchased. B) As additional units of a good or service are consumed, marginal utility diminishes. C) Utility is want-satisfying power. D) Assuming that the law of diminishing marginal utility holds, the demand curve must be upward sloping.