Monopolistic competition, like perfect competition, is a market structure in which firms can easily enter and leave the industry

In the "old days" (prior to 2008), the Fed typically conducted monetary policy by:

A. buying long-term assets like mortgage-backed securities. B. adjusting government spending and taxation. C. changing the interest rate that it paid banks on their reserves. D. targeting the federal funds rate with open market operations.

Which of the following events must cause equilibrium quantity to rise?

a. demand increases and supply decreases b. demand and supply both decrease c. demand decreases and supply increases d. demand and supply both increase