Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,

When the Fed wants to signal the public about the direction of monetary policy, it will likely use

A) a change in the discount rate. B) open market operations. C) a change in the reserve requirement. D) a public announcement about a change in the targeted federal funds rate. E) all of the above

If the equilibrium rate of interest would be 10 percent, but the usury law sets 8 percent,

A. the quantity of funds supplied would be greater than the quantity demanded. B. economic efficiency would be promoted. C. some applicants for loans would likely be turned down. D. lenders would be able to fund fully all requests for loans.