If a regulator forced a natural monopolist to set P = MC
A) the monopolist would earn economic profits.
B) the monopolist would suffer economic losses.
C) the monopolist would break even.
D) the monopolist would earn monopolistic profits.
B
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Which of the following summarizes the Fisher Effect?
A. Nominal interest rates will rise with unexpected inflation. B. Nominal interest rates will rise with expected inflation. C. Real interest rates will rise with unexpected inflation. D. Real interest rates will rise with expected inflation.
The higher the required reserve ratio, _____
a. the larger the money multiplier b. the smaller the money multiplier c. the more the excess reserves after each round of the money-creation process d. the more the money that can be lent in each round of the money-creation process e. the lower the demand for cash by the non-banking public