In the short run, when the Fed decreases the quantity of money ...

[renzo156]

In the short run, when the Fed decreases the quantity of money
 
  A) bond prices fall and the interest rate rises.
  B) bond prices rise and the interest rate falls.
  C) the demand for money increases.
  D) the supply of money curve shifts rightward.

Question 2

Let MUa and MUb stand for the marginal utilities of apples and bagels. Let Pa and Pb stand for their prices. The general necessary condition for consumer equilibrium is
 
  A) MUa = MUb.
  B) MUa = MUb and Pa = Pb.
  C) MUa/Pa = MUb/Pb.
  D) MUa/MUb = Pb/Pa.

[ebonylittles]

Answer to Question 1

A

Answer to Question 2

C

[renzo156]

YES! Correct, THANKS for helping me on my review

[bblaney]

Excellent