Other things the same, a decrease in the interest rate
a. reduces domestic investment which reduces the quantity of loanable funds supplied.
b. reduces domestic investment which reduces the quantity of loan funds demanded.
c. raises domestic investment which raises the quantity of loanable funds supplied.
d. raises domestic investment which raises the quantity of loanable funds demanded.
d
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Open market operations are
a. when U.S. treasury bonds are bought or sold in the private market. b. when the Fed changes the reserve requirement rate. c. when the Fed buys or sell U.S. treasury bonds. d. when U.S. treasury bonds are issued by the U.S. government.
Which of the following variables is left out of the simple economic model of the firm?
a. the marginal cost of production b. consumer tastes and preferences c. the fact that many firms actually earn profits d. the entrepreneurial decision-making process
What evidence does the Volcker disinflation provide concerning the importance of inflation expectations to the costs of disinflation?
Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. From society's point of view, the efficient level of output is
A. 20 haircuts. B. 23 haircuts. C. 25 haircuts. D. 30 haircuts.