When the money supply declines by 10%, in the short run (before the price level adjusts to restore general equilibrium), output ________ and the price level ________.

At its current production level, a monopolist's marginal revenue is $20 and its marginal cost is $10. Which of the following is CORRECT?

a. The monopolist should produce and sell more output. b. The monopolist should produce and sell less output. c. The monopolist is maximizing its profits at its current level of output. d. More information is required to decide if the firm needs to change its production.

The nominal rate of interest is

A) the interest rate observed in today's market. B) the interest rate observed in the market minus the inflation premium. C) not influenced by inflation. D) a value that depends upon the stock market.