Assume a fixed demand for money curve and the Fed increases the money supply. In response, people will:
a. sell bonds, thus driving up the interest rate.
b. sell bonds, thus driving down the interest rate.
c. buy bonds, thus driving up the interest rate.
d. buy bonds, thus driving down the interest rate.
d
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Ranchers can raise either cattle or sheep on their land. Which of the following would cause the supply of sheep to increase?
A) an increase in the price of sheep B) a decrease in the price of cattle C) an increase in the price of sheep feed D) an increase in the demand for cattle
A partnership is a business:
A. that has only one owner. B. legally treated as a person and owned by stockholders who are not liable for the actions of the corporate "person." C. in which each owner is liable only to the extent of his or her own investment. D. with two or more owners, with each owner liable for every other owner's actions.
Which of the following is not one of the three critical characteristics of efficient property rights?
A) Externality B) Transferability C) Exclusivity D) Enforceability