If the money supply is held constant as both real and nominal GDP are rising.
a. the velocity of money will rise.
b. the velocity of money will fall.
c. interest rates will rise

Use the figure above to answer this question. Figure ________ shows a short-run equilibrium in good times because the firm makes a(n) ________

A) A; economic profit B) A; normal profit C) B; normal profit D) B; economic loss E) C; normal profit

Recall the Application about the British experience with private water companies in the nineteenth century to answer the following question(s).Recall the Application. The British experience with water privatization showed that:

A. a single firm providing water will be profitable, but two firms will not. B. two or more firms providing water will be profitable, but a single firm will not. C. it does not matter how many firms provide water, as none will be profitable. D. it does not matter how many firms provide water, as all will be profitable.