A mutual fund is a financial intermediary that pools funds from many investors, each of which may have only a relatively small amount of money available to invest, and divides it among many different firms to create a diversified portfolio

If a monopolist faces entry by a potential rival, investing to lower its marginal cost

A) is a credible way to deter entry. B) is not a credible threat. C) is credible but will not deter entry. D) will not occur, even when there are no barriers to entry.

If the economy is already producing at its potential, _____

a. the spending multiplier equals 1/(1 - MPC) in the long run b. the spending multiplier is less than 1/(1 - MPC) in the long run c. the spending multiplier is more than 1/(1 - MPC) in the long run d. the spending multiplier equals zero in the long run e. the aggregate demand curve is horizontal