When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

Since the U.S. government can continue to issue new Treasury bonds, bills, and notes as old ones mature, we do not necessarily have to worry about suddenly have to pay back all of the national debt

a. True b. False Indicate whether the statement is true or false

Ceteris paribus, in which of the following cases would we expect economic profits to be greatest? a. an unregulated monopolist who is able to price discriminate

b. an unregulated monopolist who is unable to price discriminate. c. a regulated monopolist required to charge a price no greater than marginal cost. d. a regulated monopolist required to charge a price no greater than average cost.