Suppose that when income taxes are reduced by $400 billion, households increase consumption by 80% of the resulting change in disposable income. Suppose also that the multiplier is 2. At a given price level, the aggregate demand curve shifts to the right by

Product differentiation in a monopolistically competitive market always entails more costs than benefits.

Indicate whether the statement is true or false.

Which of the following is a result of imposing a rent ceiling?

A) There is an increase in the quantity of apartments demanded. B) The marginal benefit of the last apartment rented is less than the marginal cost of supplying it. C) Some consumer surplus is converted to producer surplus. D) There is an increase in the quantity of apartments supplied.