Due to free entry and exit in monopolistic competition, in the long run price must be equal to

If the money market is in the liquidity trap, then people

A) do not want to hold money because its value is at its lowest. B) want to hold bonds because the interest rate is quite high. C) do not want to hold bonds because their price is likely to decrease. D) want to hold bonds because their price is high. E) a, b and d

In fiscal year 1997, the U.S. government ran a deficit of about $21.9 billion. In fiscal year 1998, the government ran a surplus of about $69.3 billion. Other things the same, we would expect this change

a. decreased interest rates and investment. b. decreased interest rates and increased investment. c. increased interest rates and investment. d. increased interest rates and decreased investment.