The interest-rate-based monetary policy transmission mechanism emphasizes the
A) indirect effect of a change in the money supply that operates via a change in total planned expenditures generated by a change in the interest rate.
B) direct effect of a change in the money supply that operates via a change in total planned production generated by a change in the price level.
C) direct effect of a change in the money supply that operates via a change in total planned expenditures generated by a change in the interest rate.
D) indirect effect of a change in the money supply that operates via a change in total planned production generated by a change in the price level.
A
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When we compare economic welfare in a monopoly market to a competitive market, the profits earned by the monopolist represent
a. a transfer of benefits from the consumer to the producer. b. a loss in total welfare. c. the higher marginal costs incurred by the monopolists in comparison to competitive firms. d. the higher marginal revenues gained by the monopolists in comparison to competitive firms.
Most firms produce where marginal revenue is equal to marginal cost, but firms in a monopolistically competitive industry instead choose output where average cost is equal to demand.
Answer the following statement true (T) or false (F)