(Requires Appendix material) The following are examples of limited dependent variables, with the exception of

What would happen if banks decided to stop lending altogether and instead held on to enormous amounts of cash?

A. The tools of monetary policy would become less effective in response to high inflation. B. This would not impact the effectiveness of monetary policy. C. The tools of monetary policy would become more effective in response to a recession. D. The tools of monetary policy would become less effective in response to a recession.

For a firm that uses land, labor and capital as inputs, how should the inputs be utilized in order to minimize total costs?

What will be an ideal response?