Suppose there is an increase in the oil price in the United States. Which of the monetary policies should the Federal Reserve use in order to achieve the goal of maximum employment? a) The Fed should increase the reserve requirements b) The Fed should increase the federal funds target rate c) the fed should expand its balance sheet d) the fed should increase the discount rate

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.