New classical economists believe that if policy is correctly anticipated and if rational expectations hold, when the Fed increases the money supply the result will be a(n) ______________ in the price level and ____________________________

Suppose a currency's value in the foreign exchange market is determined solely by market supply and demand without any intervention by the government authority, the currency has

A) a fixed exchange rate. B) a gold standard. C) a price control in its exchange rate. D) a floating exchange rate.

Which of the following is true of a monopolist in the short run?

A. It is constrained by marginal cost in setting price. B. It is constrained by consumer demand in setting price. C. It charges more than what consumers are willing to pay. D. It always earns an economic profit. E. It can charge whatever price it wants.