Refer to the figure above. If the monopolist faces a constant marginal cost of $2, what is the optimal quantity that it should produce?

Everything else held constant, an increase in the excess reserves ratio causes the M1 money multiplier to ________ and the money supply to ________

A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease

A pattern in the coefficients of the time fixed effects binary variables may reveal the following in a study of the determinants of state unemployment rates using panel data:

A) macroeconomic effects, which affect all states equally in a given year. B) attitude differences towards unemployment between states. C) there is no economic information that can be retrieved from these coefficients. D) regional effects, which affect all states equally, as long as they are a member of that region.