When an exchange rate is established as a fixed peg, active intervention may be required to maintain the target-pegged rate

If firms in monopolistic competition are earning economic profits, then

A) they can expect to earn the profits indefinitely. B) new rivals enter the industry, and the demand for any seller's good decreases. C) the market demand becomes more inelastic. D) the industry is in long-run equilibrium. E) new rivals enter the industry, and the demand for any seller's good increases.

Depositors lack of information about the quality of bank assets can lead to

A) bank panics. B) bank booms. C) sequencing. D) asset transformation.