If Md = 1,000 – 400r and Ms = 2,000, the MPC = .85, G=100, and T = 120, then the equilibrium interest rate is

In the equation of exchange, velocity will tend to rise when: a. the price level rises, other things being equal

b. real GDP rises, other things being equal. c. the money supply declines, other things being equal. d. all of the above.

The sum of consumer surplus and producer surplus is equal to

A) the deadweight loss. B) the economic surplus. C) zero. D) total profit.