A business produces 4,00 . units per month which he sells at $20/unit. Costs include: $10,00 . on raw materials, $15,00 . on operators and $10,00 . on sales people. In order to break even the fixed costs will have to be:

In the 1970s, the Fed selected an interest rate as an operating target rather than a reserve aggregate primarily because it

A) had no interest in targeting a monetary aggregate, as evidenced by its unwillingness to target a reserve aggregate. B) was still very concerned with achieving interest rate stability. C) was committed to targeting free reserves. D) was committed to the real bills doctrine.

Assuming that the increase in the value of the dollar in the foreign exchange market has a greater impact on aggregate demand than on aggregate supply, an increase in the United States budget deficit will raise Real GDP

A) more in an open economy than in a closed economy. B) more in a closed economy than in an open economy. C) to the same level irrespective of whether it is a closed or an open economy. D) none of the above (i.e. Real GDP will decrease)