A monopolistically competitive firm faces a downward-sloping demand curve.
Answer the following statement true (T) or false (F)
True
This is the case because monopolistically competitive firms are able to differentiate their products, giving them limited monopoly power.
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The Fed has been called "the lender of last resort" because it
A) is the biggest bank in the country. B) is the only lender to the federal government. C) serves as the last place to acquire loans for banks suffering cash management, or liquidity, problems. D) a and b E) all of the above
If GDP increases, there will initially be
A) a shortage of money and the equilibrium interest rate will rise. B) a shortage of money and the equilibrium interest rate will fall. C) a surplus of money and the equilibrium interest rate will rise. D) a surplus of money and the equilibrium interest rate will fall.