The money supply is $10 million, currency held by the nonbank public is $2 million, and the reserve—deposit ratio is 0.2. Bank reserves are equal to

The outside lags related to monetary policy tend to be quite long

Indicate whether the statement is true or false

The retail market for video rentals is a monopolistically competitive market. A greater supply of video rental outlets along with the increased availability of substitutes like cable channels would likely make rental rates

a. decrease slightly b. remain unchanged c. crash d. fluctuate wildly up and down e. increase