All of the following are typically considered procyclical variables except

In the above figure, if the natural monopoly is regulated using an average cost pricing rule, but the firm can pad its costs and make the regulator believe its costs are LRAC (inflated), then the price the firm charges will increase from

A) $18 to $24. B) $12 to $24. C) $12 to $18. D) $18 to $36.

Researchers at the Federal Reserve found that M2 money demand functions performed ________ in the 1980s, with M2 velocity moving ________ with the opportunity cost of holding M2

A) poorly; erratically B) poorly; closely C) well; erratically D) well; closely