The simple graph that depicts intended investment as a horizontal straight line (investment measured on the vertical axis and national income measured on the horizontal axis) implies that intended investment is

Which of the following statements is true?

A) An excess demand for credit exerts an upward pressure on the real rate of interest. B) At rates of interest below the equilibrium rate, there is an excess supply of credit. C) An excess supply of credit exerts an upward pressure on the real rate of interest. D) At rates of interest above the equilibrium rate, there is an excess demand for credit.

A natural monopoly exists when

A) control of a key input leads to a single-firm industry. B) increasing marginal returns and the ability to obtain quantity discounts from suppliers leads to a single-firm industry. C) economies of large-scale production are substantial, leading to a single-firm industry. D) the government restricts entry that leads to a single-firm industry.