A fall in which of the following would increase the money multiplier?
a. The monetary base
b. A change in M1
c. The level of Federal Reserve open market purchases
d. An increase in the currency to checkable deposit ratio
e. All of the above
D
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The aggregate supply curve reflects the inverse relationship between the interest rate and the quantity of real GDP supplied
a. True b. False Indicate whether the statement is true or false
In contrast with perfect competition, excess capacity characterizes monopolistic competition. Excess capacity is due to which of the following?
A) Monopolistically competitive firms face downward-sloping demand curves. In the long run, firms produce where their demand curves are tangent to their long-run average total cost curves.
B) Monopolistically competitive firms produce at the minimum point on their average total cost curves.
C) Monopolistically competitive markets have low barriers to entry.
D) Monopolistically competitive firms produce where marginal revenue is equal to marginal cost.