-In Figure 15

question 54

Multiple Choice

-In Figure 15.3,the Fed can change the equilibrium interest rate from 2 percent to 6 percent by

• A)Buying bonds in the open market.
• B)Decreasing the reserve requirement.
• C)Raising the discount rate.

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Definitions:

Fixed Cost

Any cost that in total does not change when the firm changes its output.

Firm's Output

The total quantity of goods or services produced by a company within a specified period.

Variable Cost

Costs that vary directly with the level of production or service provision, increasing as production increases and decreasing as production decreases.

Fuel Payments

Money expended to cover the cost of fuel, often in the context of transportation, heating, or energy production.