Use the following diagram to answer the next question.
Based on this diagram, we can say ________.
A. monetary policy is likely to be more effective at fighting a recession than fiscal policy
B. investment demand is very sensitive to changes in the interest rate
C. an increase in the money supply will have little effect on investment or aggregate demand
D. expansionary monetary policy will be more effective at increasing aggregate supply than aggregate demand
Answer: C
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What is the Herfindahl-Hirschman Index if the four firms in an industry account have market shares of 62 percent, 15 percent, 15 percent, and 8 percent?
A) 100 B) 4,358 C) 111,600 D) 2,822 E) 6,200
Which of the following is least likely to limit the ability of a firm to minimize production costs?
A) Resistance by labor. B) The fact that the firm is a nonprofit organization. C) An increase in the amount of competition faced by the firm. D) Legislated input combinations for firms in particular industries, e.g, health care.