If the firm in Figure 17-4 above maintains its set price of P0, its profit is

Decreases in taxes shift the aggregate demand curve to the right

Indicate whether the statement is true or false

Which of the following functions are performed by depository institutions?

I. They make long-term loans using short-term deposits, thereby creating liquidity. II. They efficiently gather funds from a large base of depositors. III. They concentrate risk. A) I only B) II only C) III only D) I and II