According to the equation of exchange, if V = 10, P = 3, and Y = $50, then the money supply equals

Suppose Robert deposits $100 of cash into a checking account at a commercial bank. His actions will

A) decrease M1 by $10,000. B) increase M1 by $10,000. C) produce no change in M1, but M1 will decrease in the future because the bank has excess reserves. D) produce no change in M1, but M1 will increase because the bank has excess reserves.

In a perfectly competitive market:

A) the long-run market price is equal to the average fixed cost of the industry. B) the long-run market price is less than the minimum average cost of the industry. C) the long-run market price is more than the minimum average cost of the industry because of free entry and exit of firms. D) the long-run market price is equal to the minimum average cost of the industry because of free entry and exit of firms.