When the money market is drawn with the value of money on the vertical axis, long-run equilibrium is obtained when the quantity demanded and quantity supplied of money are equal due to adjustments in

a. the value of money.
b. real interest rates.
c. nominal interest rates.
d. the money supply.

a

Economics

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If a monopoly can produce a good at zero marginal cost, then its Lerner Index is

A) zero. B) one. C) infinity. D) undetermined.

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Over the range of positive, but diminishing, marginal returns for an input, the total product curve:

A. Falls B. Rises at a constant rate C. Rises at a decreasing rate D. Rises at an increasing rate

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