3.If a 10-percent increase in both capital and labor causes ou utput to increase by less than 10 percent,the production function is said to exhibit decreasing returns to scale.If it causes output to increase by more than 10 percent,the production function is said to exhibit increasing returns to scale.Why might a production function exhibit decreasing or increasing returns to scale? 4.Who controls the money supply and how? 5.List all the costs of inflation you can think of,and rank them according to how important you think they are 6Explain different between portfolio and transctions theories of money demand3. If a 10-percent increase in both capital and labor causes output to increase by less than 10 percent, the production function is said to exhibit decreasing returns to scale. If it causes output to increase by more than 10 percent,the production function is said to exhibit increasing returns to scale. Why might a production function exhibit decreasing or increasing returns to scale? 4.Who controls the money supply and how? 5.List all the costs of inflation you can think of, and rank them according to how important you think they are. 6 Explain different between portfolio and transctions theories of money demand