Suppose the supply of ocean front property in San Diego is perfectly inelastic. Any increases in demand for this property increases the

Monetary policy is conducted

A) only by the Federal Reserve. B) by the Federal Reserve and the President of the United States. C) by the Federal Reserve, the President of the United States, and Congress. D) by the Federal Reserve with veto power residing with the President of the United States.

Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil. We can conclude that

A) Honduras has a lower opportunity cost of producing bananas relative to Brazil. B) Brazil has an absolute disadvantage in producing bananas relative to Honduras. C) Labor costs are higher for banana producers in Brazil than in Honduras. D) Honduras also has an absolute advantage in producing bananas relative to Brazil.