If the level of investment spending increases by $100 and the MPC in the economy is 0.8, then the cumulative spending increase after three rounds of spending is

A monopoly advertises

A) to raise its profit. B) to decrease costs. C) dissuade entry by other firms. D) reduce deadweight loss.

The aggregate supply curve is horizontal in the intermediate range

a. True b. False Indicate whether the statement is true or false