If a cut in prices decreases total revenue in the short run, what ...

[rmenurse]

If a cut in prices decreases total revenue in the short run, what will it do to total revenue in the long run?
 a. It will decrease total revenue in the long run.
 b. It will increase total revenue in the long run.
 c. It will leave total revenue unchanged in the long run.
  d. Any of the above results are possible in the long run.

Question 2

Which is potentially the most powerful tool available to the Fed to control the supply of money?
 a. open market operations
 b. moral suasion
 c. changes in reserve requirements
  d. discount rate changes

[annierak]

Answer to Question 1

d

Answer to Question 2

c

[rmenurse]

Gracias!

[Dominic]

Excellent