Which of the following statements about product development in monopolistic competition is correct?
i. Firms in monopolistic competition undertake too much product development for efficiency.
ii. Firms in monopolistic competition undertake too little product development for efficiency.
iii. Product development might allow the firm to temporarily earn an economic profit.
A) i only
B) ii only
C) ii and iii
D) i and iii
E) iii only
C
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An increase in the money supply, other things equal, shifts the ________ curve to the ________
A) IS; right B) IS; left C) LM; left D) LM; right
People are likely to want to hold more money if the interest rate
a. increases, making the opportunity cost of holding money rise. b. increases, making the opportunity cost of holding money fall. c. decreases, making the opportunity cost of holding money rise. d. decreases, making the opportunity cost of holding money fall.