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Answer the following multiple choice questions Q7: Country A's central bank is considering altering the money supply in country A. The demand for money can

Answer the following multiple choice questions

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Q7: Country A's central bank is considering altering the money supply in country A. The demand for money can be modeled as follows: MD = 250 - 500i, where i is the nominal interest rate. If the current nominal interest rate is 10%, which of the following new levels of money supply would correspond to contractionary monetary policy? A) 100 B) 200 C) 300 D) Both A and C E) None of the above Q8: What is the effect of price discrimination in a monopolistic market? A) It increases consumer surplus B) It increases social surplus C) It reduces total output D) It reduces producer surplus E) None of the above Q9: Consider a standard perfect competition model. How the decrease in the fixed costs will affect the market price p and the production of a single firm in the market q? A) Both p and q will increase B) Both p and q will decrease C) p will increase while q will decrease D) p will decrease while q will increase E) At least one of these parameters (p or q or both) will remain the same Q10: Consider a standard perfect competition model. How the decrease in the fixed costs will affect the number of firms N and the total production Q? A) Both N and Q will increase B) Both N and Q will decrease C) N will increase while Q will decrease D) N will decrease while Q will increase E) At least one of these parameters (N or Q or both) will remain the same

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