When wages rise, AS shifts _____ and aggregate price levels _____.

	a.	left; fall.
	b.	right; fall
	c.	right; rise
	d.	left; rise

The relation between a country's level of saving and investment:

	a.	pertains to trade surpluses only.
	b.	does not affect an open economy.
	c.	affects its trade balances.
	d.	has often been used to correct a trade deficit but not a trade surplus.

When returns are diminishing, the marginal cost curve is upward-sloping.

	a.	True
	b.	False

When it was established in 1913, the Federal Reserve was given the authority to require all banks to hold adequate reserves for their deposits and to inspect their accounts.

	a.	False
	b.	True