In the long run, a competitive firm will earn zero economic profit

In the simple model of multiple deposit creation in which banks do not hold excess reserves, the increase in checkable deposits equals the product of the change in reserves and the

A) reciprocal of the excess reserve ratio. B) simple deposit expansion multiplier. C) reciprocal of the simple deposit multiplier. D) discount rate.

If an inflation forecast is based on expected monetary growth, it is likely to be

A) historical. B) rational. C) logical. D) adaptive.