Competitive firms will always try to earn more than a normal profit by doing the following, except:

Beginning in 1965, the head of the Antitrust Division of the U.S. Department of Justice began to change antitrust policy. How did antitrust policy change?

A) For the first time horizontal mergers were allowed—with government approval—and vertical mergers were allowed without need for approval from the government. B) For the first time concentration ratios were used to evaluate the degree of competition in the industries of firms that proposed mergers. C) The Division began to systematically consider the economic consequences of proposed mergers. D) Proposed mergers no longer needed the approval of the Federal Trade Commission or the court system.

Refer to the market for loanable funds, as shown in the above graph. A decline in the interest rate is likely to:

A. Lower capital investment B. Increase the quantity of loanable funds demanded C. Come about when there is a shortage of loanable funds D. Result from an increase in the desire of firms to borrow funds