28. Which one of the following statements is false? * A) a. Marginal cost is the increase in total cost resulting from a unit increase in output. B) b. Average fixed cost plus average variable cost equals average total cost. C) c. Marginal cost depends on the amount of labor hired. D) d. Total cost equals total fixed cost plus total average cost. 29. What do you understand by inflation? * A) Increase in price of a particular item B) Decrease in the overall price level C) Increase in the overall price level D) Decrease in price of a particular item 30. What do you understand by budget deficit? * A) Government spends more than what it earns in taxes B) Government spends the same amount that it earns in taxes C) Government spends less than what it earns in taxes D) None of the above 31. Money is a medium of exchange means: * A) You can save money for the future B) You can use money to buy and sell goods and services C) You can use money to compare the value of different goods D) You can use money to make deferred payments 32. Which of the following monetary policies will increase the money supply? * A) Increase the required reserve ratio B) Decrease the required reserve ratio C) Increase the discount rate D) Sell of securities by the central bank