Suppose the banking system currently has 300 billion in reserves that the reserve requirement is 10%, and that $3 billion of the reserves are excess reserves that will not be lent out. What is the value of deposits?

When there is a shortage, producers raise prices in an attempt to

a. separate the quantity supplied and demanded b. raise the quantity demanded c. equalize the quantity supplied and demanded d. lower the quantity supplied

In monopolistic competition, firms do not have to produce innovative products because they have downward-sloping demand curves

Indicate whether the statement is true or false