Which of the following represents the best government policy to reduce the deadweight loss associated with a monopolistically competitive market?
a. The government should regulate firms in a manner similar to natural monopolies.
b. The government should encourage more firms to enter the industry because without government intervention, there are likely to be "too few" firms.
c. The government should encourage some firms to exit the industry because without government intervention, there are likely to be "too many" firms.
d. There is no government policy that can reduce deadweight loss without creating other problems.
d
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An increase in wealth leads to ________ loanable funds
A) a decrease in the demand for B) an increase in the supply of C) a decrease in the supply of D) an increase in the demand for E) no change in either the supply of loanable funds or the demand for
If there is no Ricardo-Barro effect, a government budget surplus
A) increases the demand for loanable funds. B) increases the supply of loanable funds. C) decreases the supply of loanable funds. D) decreases the demand loanable funds. E) has no effect on the demand for loanable funds, the supply of loanable funds, or the real interest rate.