A firm's ______ connects all the input combinations with the same price.
A. cost function
B. isoquant
C. budget constraint
D. isocost line
D. isocost line
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Refer to the figure below. Based on the diagram, the nominal interest rate equals ________ and the money supply equals ________. 
A. 7%; 300 B. 5%; 500 C. 1%; 500 D. 3%; 700
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and GDP Price Index falls. b. The real risk-free interest rate falls, and GDP Price Index rises. c. The real risk-free interest rate rises, and GDP Price Index falls. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The real risk-free interest rate and GDP Price Index remain the same.
Ronaldo's Foods considered building a store in a new location. The owners and their accountants decided that this was not the profitable thing to do. However, soon after they made this decision, both the interest rate and the cost of building the store changed. In which case do these changes both make it more likely that they will now build the store?
a. Interest rates rise and the cost of building the store rises. b. Interest rates rise and the cost of building the store falls. c. Interest rates fall and the cost of building the store rises. d. Interest rates fall and the cost of building the store falls.
In Figure 15.3, the Fed can change the equilibrium interest rate from 2 percent to 6 percent by
A. Increasing the amount of coins in circulation. B. Decreasing the reserve requirement. C. Raising the discount rate. D. Buying bonds in the open market.