The multiplier is equal to

If the Federal Reserve targets the interest rate and the money demand curve shifts to the left, then the Fed

A) can maintain the interest rate target, but at a higher quantity of the money supply. B) cannot maintain the interest rate target. C) can maintain the interest rate target with no change in the money supply. D) can maintain the interest rate target, but at a lower quantity of the money supply.

The Bertrand model of price setting assumes that a firm chooses its price

A) independently of what price other firms charge. B) subject to what price rival firms are charging. C) so that joint profits are maximized. D) without considering the shape of the demand curve.