The nominal interest rate for a consumer loan lasting from 2007 to 2008 is 8.5 percent and the real interest rate is 4.5 percent. If the consumer price index was 200 in 2007, what would the consumer price index value be in 2008?

The firm in the figure above is in monopolistic competition. It will set a price equal to

A) $1. B) $2. C) $3. D) more than $3.

Refer to the graph below with three demand curves. A "decrease in demand" would be illustrated as a change from:

A. Point 1 to point 4
B. Point 1 to point 3
C. Line C to B
D. Line A to C