In 2012, U.S. banks held ________

If the Fed raises its target for the federal fund rate, this indicates that

A) the Fed is pursuing an expansionary monetary policy. B) the Fed is attempting to combat deflation. C) the Fed is pursuing a contractionary monetary policy. D) The Fed is concerned that the growth in aggregate demand is too slow to keep up with potential GDP.

Which situation is consistent with the law of diminishing marginal utility?

A. The more pizza Joe eats, the more he enjoys an additional slice B. The more pizza Joe eats, the less he enjoys an additional slice C. Joe's marginal utility from eating pizza becomes positive after eating three slices D. Joe's marginal utility from eating pizza reaches a maximum when total utility is zero