In the long run, firms in monopolistic competition have excess capacity

If C + I = Y and Y - C = S, then

A) I = 0. B) S = 0. C) S = I. D) Y = S + I.

In the IS-LM model, the expenditure multiplier is [1/(1-b)] when the

A) LM curve is horizontal. B) LM curve is upward-sloping. C) LM curve is vertical. D) IS curve is vertical.