In the economic way of thinking, which statement makes the most sense?

Some economists believe that the economy benefits from firms having market power. Which of the following is an argument that has been made to support this position?

A) Large firms are better able than small firms to spend funds on research and development required to develop new products. B) Research has shown that the deadweight loss from monopolies is a small percentage of the value of production in the United States. C) Competition is very rare in the U.S. economy and few new products are produced by smaller, competitive firms. D) Large firms can afford to lobby the U.S. government in order to impose restrictions on imports and reduce the outsourcing of jobs to other countries.

If housing prices are expected to increase, then, other things equal, the demand for houses will ________ and that of Treasury bills will ________

A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase