Currently, the Federal Reserve earns approximately $30 billion of interest annually on its holdings of government bonds. Only a small portion of these earnings is required to cover the Fed's operating costs. The remainder of these earnings is

a. distributed to the member banks of the Federal Reserve system.
b. invested in corporate stocks held by the Fed.
c. returned to the U.S. Treasury.
d. loaned to commercial banks.


C

Economics

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Suppose the short-run supply curve is a straight line of slope +1 that intersects the origin. The long-run supply curve will be

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