Real dollar amounts are essentially the same as nominal dollars.

If the money multiplier is 3.5, a $10 billion increase in the monetary base

A) increases the quantity of money by $35 billion. B) increases the quantity of money by $2.86 billion. C) increases the quantity of money by $3.5 billion. D) increases the quantity of money by $10 billion.

When a firm has an accounting profit that is negative, it

A) will never produce output, even in the short run. B) may still have economic profit. C) has total revenue that is less than total cost. D) cannot be producing where price equals marginal cost.