Refer to the information provided in Figure 7.9 below to answer the question(s) that follow. 
Figure 7.9Refer to Figure 7.9. The firm is currently along isocost CD. If the price of labor is $42, then the price of capital is
A. $21.
B. $42.
C. $63.
D. $84.
Answer: B
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If the Fed sells government securities, in the short run the nominal interest rate ________ and the real interest rate ________
A) rises; does not change B) rises; rises C) does not change; rises D) falls; falls E) rises; falls
The "corporate takeover market" plays a part in handling the conflict between management and __________ in __________-oriented financial systems
A) bankers; markets B) bankers; banking C) stockholders; markets D) stockholders; banking
If the Federal Reserve raises the discount rate, banks will be inclined to borrow additional reserves and the money supply will increase.
Answer the following statement true (T) or false (F)
The demand curve for a monopoly's product is
A) the market demand for the product. B) more elastic than the market demand for the product. C) more inelastic than the market demand for the product. D) undefined.