If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then the deadweight loss from monopoly equals

In an open economy, an increase in government spending will cause

A) a reduction in domestic output. B) a reduction in imports. C) a reduction in net exports. D) all of the above E) none of the above

If the Board of Governors of the Federal Reserve System increases the legal reserve ratio, this change will:

A. Increase the excess reserves of member banks and thus increase the money supply B. Increase the excess reserves of member banks and thus decrease the money supply C. Decrease the excess reserves of member banks and thus decrease the money supply D. Decrease the excess reserves of member banks and thus increase the money supply