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17. According to liquidity preference theory, the money-supply curve would shift leftward (A) if the money demand curve shifted left. (B) if the Federal Reserve chose to decrease the money supply. (C) if the interest rate decreased. (D) if the price level decreased.

16. Regarding the behavior of firms in an oligopoly, which of the following statement(s) are correct? (A) Oligopolistic firms may engage in tacit collusion, where they implicitly agree to maintain higher prices without explicit communication. (B) When firms in an oligopoly collude, they act as a monopoly and maximize total industry profits. (C) The kinked-demand curve model suggests that oligopolistic firms face a demand curve that is more elastic for price increases than for price decreases. (D) In a Cournot duopoly, each firm determines its profit-maximizing output level assuming the output of the other firm is fixed.

15. When Amy's income increased from $15,000 to $30,000, her consumption of macaroni decreased from 12 pounds to 6 pounds, and her consumption of soy-burgers increased from 3 pounds to 6 pounds. Using the midpoint method, we can conclude that: (A) Macaroni and soy-burgers are both normal goods with income elasticities greater than \( 1/2 \). (B) Macaroni is an inferior good and soy-burgers are normal goods; both have income elasticities greater than \( 1/2 \). (C) Macaroni is an inferior good with an income elasticity less than \( 1/2 \) and soy-burgers are normal goods with an income elasticity greater than \( 1/2 \). (D) Macaroni and soy-burgers are both inferior goods with income elasticities less than \( 1/2 \).

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