Use the following table to answer the next question.Interest RateTransaction Demand for MoneyAsset Demand for MoneyMoney Supply2%$220$300$46042202804606220260460822024046010220220460The equilibrium interest rate is

A. 4%.
B. 2%.
C. 8%.
D. 6%.


Answer: C

Economics

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Which of the following increases labor productivity?

A) decreases in the availability of computers and factory buildings B) a decline in the health of the population C) inventions of new machinery, equipment, or software D) an increase in the aggregate hours of work

Economics

The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. This game is an example of a:

A. credible promise. B. cartel. C. game with multiple equilibria. D. prisoner's dilemma.

Economics

Given the strict quantity theory of money, if the quantity of money doubled, prices would:

A. fall by half. B. double. C. remain constant. D. increase somewhat but less than double.

Economics

A positive externality results when

A) economists are sure that a good or service provides benefits to consumers. B) someone pays for a good or service even though she is not directly affected by the production or consumption of it. C) people who live in one country benefit from the production of a good or service that occurs in another country. D) people who are not directly involved in producing or paying for a good or service benefit from it.

Economics