The greater the the number and closeness of substitutes available between monopolistically competitive firms
A) the greater the ability of a firm to raise its price above the price of close substitutes.
B) the smaller the ability of a firm to raise its price above the price of close substitutes.
C) the more inelastic the demand curve.
D) the greater the positive economic profits for a single firm.
B
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A vertical aggregate supply curve favors which of the following policies?
A. Discretionary policy B. Fiscal policy C. The Fed's eclecticism D. Fixed rules
Since October 2008, Congress has granted the Fed an authority to
A) pay banks interest on both required reserves and excess reserves. B) charge banks interest on both required reserves and excess reserves. C) charge banks interest on required reserves but pay them interest on excess reserves. D) charge banks interest on excess reserves but pay them interest on required reserves.