In an economy where aggregate spending is given by Y = 3,000 + .75Y - 10,000 r, the central bank is currently setting the interest rate at 0.06 (6 percent). If potential output equals 9,500, the central bank must ________ the interest rate to close the ________ gap.

If the U.S. interest rate differential falls, then the exchange rate

A) does not change. B) definitely falls. C) definitely rises. D) falls only if it was the U.S. interest rate that changed. E) rises only if it was the foreign interest rate that changed.

Joe Santos owns the only pizza parlor in a small town that is also home to a McDonald's, a Taco Bell, and a Kentucky Fried Chicken. Using a broad definition of a monopoly, Joe has a monopoly

Indicate whether the statement is true or false