If Happy Cows, a dairy manufacturer, sells its sour cream division, this is an example of ________.

Refer to Figure 10.2. In moving from the competitive level of output and price to the monopoly level of output and price, the deadweight loss is the area:

A) QmEHQc. B) GEH. C) GFH. D) FEH. E) none of the above

Suppose an expansionary monetary policy reduces nominal interest rates. If this is the case, it follows that the expansionary monetary policy must have:

A. increased expected inflation. B. reduced expected inflation. C. increased expected inflation less than it reduced real interest rates. D. reduced real interest rates less than it increased expected inflation.