If the benefits of X = $100 and the price of X = $50, then
A. you should not buy X.
B. you will be indifferent between buying X and keeping your money.
C. $100 is the reservation price.
D. $0 is the reservation price.
Answer: C
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Assume that investment does not depend on the interest rate. A reduction in the money supply will cause which of the following for this economy?
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