Suppose the government decided to tighten monetary policy and decrease government expenditures. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output

Refer to Scenario 25-2. As a result of Kristy's deposit, Bank A's required reserves increase by

A) $2,000. B) $8,000. C) $10,000. D) $50,000.

The demand for the product of a monopolistically competitive firm is highly elastic when

A) firms collude. B) there are fewer firms in the industry. C) there is a lot of product differentiation. D) there are a lot of close substitutes.