Does the composition of the money supply change
Problem
A person takes $4,000 in cash and places it into a checking account in a bank. Does the composition of the money supply change? Does the size of the money supply change? Explain your answers.
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Why might oligopolists charge less than their short-run profit-maximizing price when threatened by entry?
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Does the composition of the money supply change? Does the size of the money supply change? Explain your answers.
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Does it also have a Nash equilibrium in which one of the players, say player i, bids v. Is the outcome of the strategy profile described in part 1 efficient?
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