Fluctuations in total output are the reverse image of fluctuations in

Milk can be used to produce cheese or butter. If the price of a pound of butter rises, what happens to the supply of cheese?

A) The supply of cheese decreases. B) The supply of cheese increases. C) The supply of cheese stays the same and there is a decrease in the quantity supplied of cheese. D) The supply of cheese stays the same and there is no change in the quantity supplied of cheese. E) The supply of cheese could increase, decrease, or stay the same depending on what happens to the supply of butter.

Suppose that the interest rate is greater than the equilibrium interest rate. Which of the following occurs?

I. There is an excess quantity of money. II. The quantity of money automatically increases. III. The interest rate falls. A) I B) I and II C) I and III D) I, II and III