A mortgage-backed security (MBS) is a type of bond whose interest payments and principal repayments derive from the monthly mortgage payments of many households.

A monopolistically competitive firm and a monopoly are similar because

A) each firm can raise its price without losing all of its sales. B) both firms must behave strategically toward other firms in the industry. C) both firms always operate at their point of minimum average total cost. D) each firm has a large number of small competitors. E) both firms will earn zero profits in the long run.

Interest rates would __________ if the supply of loanable funds decreased.

A. stay the same B. decline C. rise