Which of the following would not be an expected response from a decrease in the price level and so help to explain the slope of the aggregate-demand curve?
a. When interest rates fall, In-and-Out Convenience Stores decides to build some new stores.
b. The exchange rate falls, so French restaurants in Paris buy more Kansas beef.
c. Tyler feels wealthier because of the price-level decrease and so he decides to remodel his kitchen.
d. With prices down and wages fixed by contract, Fargo Concrete Company decides to lay off workers.
d
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Refer to the table above. If there is no statistical discrepancy, the capital and financial account balance equals
A) -$200 billion. B) +$200 billion. C) -$220 billion. D) +$220 billion. E) +$20 billion.
Suppose the price of home heating oil is unchanged, yet we observe people purchasing 20% more than a year ago. Then
A) the demand for home heating oil has increased. B) the demand for home heating oil has decreased. C) the demand for home heating oil has remained unchanged—only quantity demanded changed. D) the law of demand has been proven false.
Which activity of the Fed would tend to increase excess reserves throughout the banking system?
A) Purchases of government bonds on a mass scale B) An increase in the required reserve ratio C) An increase of the discount rate D) Sales of government bonds on a mass scale