Refer to the scenario above. What is the probability of picking a blue ball from the box?

An increase in the interest rates will

a. cause people to hold less money, which, in turn, means that the velocity of money increases. b. cause people to hold less money, which, in turn, means that the velocity of money decreases. c. cause people to hold more money, which, in turn, means that the velocity of money increases. d. cause people to hold more money, which, in turn, means that the velocity of money decreases.

Under perfect competition, the efficient level of output is produced because

A. price equals marginal cost. B. government regulates the output level that must be produced. C. firms earn only a normal profit in the long run. D. firms can earn an economic profit in the long run.