The money supply, as measured by M1, consists almost entirely of currency

Suppose a perfectly competitive industry is in long-run equilibrium. If a decrease in demand leads to a higher long-run price, we know that

A) this is a decreasing-cost industry. B) this is an increasing-cost industry. C) some firms will be losing money in the long run. D) after further adjustments, price will fall to its original level.

Cash held by the public, excess reserves kept by banks, and a high required reserve ratio will increase the amount of new money created by an initial increase in excess reserves

Indicate whether the statement is true or false