Refer to the table below. If the monopolist were forced to produce the socially optimal output through the imposition of a ceiling price, the ceiling price would have to be set at:

When interest rates in the U.S. decline, we can expect capital:

A. inflows and outflows to increase. B. inflows and outflows to decrease. C. outflow to decrease, and inflow to increase. D. inflow to decrease, and outflow to increase.

How does an open-market purchase by the Fed affect the level of bank reserves and the interest rate? Illustrate the interest rate effect by drawing the appropriate graph.

What will be an ideal response?