The Fed could conduct an open market purchase to eliminate an inflationary gap.

An outward bowed production possibilities curve illustrates

A) inefficient production. B) the law of increasing additional cost. C) a lack of scarcity. D) zero opportunity cost of moving from inefficient production to currently unobtainable production.

Financial capital by itself is not a factor of production; instead it is only a paper claim on economic capital

a. True b. False Indicate whether the statement is true or false