Classical economists
a. argued that the money supply determined aggregate demand.
b. regarded monetary policy as unimportant since the quantity of money does not determine the price level.
c. believed that the quantity of money influences interest rates and real wages.
d. believed that prices would increase more than proportionate to an increase in the money supply.
A
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The term "bilateral monopoly" refers to market situations in which
a. there are two participants on the selling side. b. there are two participants on the buying side. c. there is a monopoly on the selling side and a monopsony on the buying side. d. a monopoly has evaded antitrust laws.
Predatory pricing is
A. the practice by which a large, powerful firm attempts to drive its competitors out of the market by temporarily setting an artificially low price. B. often effective and a relatively inexpensive means of eliminating competition. C. legal under the U.S. antitrust laws. D. generally more effective when barriers to entry exist.