If the economy is in a recession, the Fed could:
A. sell bonds through open market operations to increase spending in the economy.
B. increase the reserve requirement to increase confidence in the financial system.
C. buy bonds through open market operations to increase spending in the economy.
D. increase the discount rate so banks will increase their lending in the economy.
Answer: C
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Considering how a change in one variable affects the value of another variable is called
A) the principle of supply and demand. B) the marginal principle. C) the Peter Principle. D) functional decision making.
Many late 19th century managerial innovations were first developed by
a. the automobile industry. b. the railroads. c. the textile industry. d. the iron and steel industries.
For a bank to earn as much profit as possible, its excess reserves should be:
A. equal to its required reserves. B. as small as possible. C. less than its vault cash. D. growing at a constant rate.
Refer to the information provided in Figure 7.7 below to answer the question(s) that follow. 
Figure 7.7Refer to Figure 7.7 above. If Roller Skates Unlimited moves from isoquant B to isoquant A, the number of roller skates produced
A. decreases. B. remains constant, but Roller Skates Unlimited uses more capital and more labor. C. increases. D. remains constant, but input prices have risen.