M1 does not include

Simple loans and discount bonds differ from coupon bonds and fixed-payment loans in that

A) interest on simple loans and discount bonds is taxable, while interest on coupon bonds and fixed-payment loans is not. B) interest on coupon bonds and fixed-payment loans is taxable, while interest on simple loans and discount bonds is not. C) interest rates on simple loans and discount bonds are generally higher than interest rates on comparable coupon bonds and fixed-payment loans. D) interest on simple loans and discount bonds is paid in a single payment, while issuers of coupon bonds and fixed-payment loans make multiple payments of interest and principal.

A perfectly competitive firm with a random demand has an expected marginal revenue that is ________ its expected price.

A) greater than B) exactly double C) less than D) equal to