If the monetary multiplier is 6, then the reserve ratio must be:

A monopoly ________

A. can choose its price and output and always has the option of price discriminating B. is a price taker and by offering a range of discounts can price discri-minate C. that produces a good that cannot be resold might choose to price dis-criminate D. book store that offers a discount on Tuesdays is price discriminating

An increase in the reserve supply

a. will result in inflation if the unemployment rate is high. b. causes interest rates to rise. c. shifts the aggregate demand curve inward. d. will probably cause inflation if the economy is at potential GDP.