An increase in the money supply is likely to
A. lower interest rates.
B. raise interest rates.
C. decrease the quantity of money demanded.
A. lower interest rates.
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
A large government debt increases the amount of capital in the economy and thereby increases future incomes and real wages
Indicate whether the statement is true or false
In the long run a monopolistic competitor
A) set MR = MC. B) produces where P = AC. C) sets P > MC. D) All of the above.
Common resources and public goods have in common that they are not excludable and they are not rival in consumption
a. True b. False Indicate whether the statement is true or false