If the asset market is to remain in equilibrium, then if the money supply increases, output is unchanged, the price level is unchanged, and the expected inflation rate is unchanged, then
A) the real interest rate must rise.
B) the real interest rate must decline.
C) the nominal interest rate must rise.
D) the inflation rate must rise.
B
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Economists use models in order to
A. experiment with alternative circumstances. B. make educated guesses about real-life events. C. predict outcomes under various hypothetical conditions. D. increase understanding of how a relationship actually works. E. All of these responses are correct.
Describe each of the five game types discussed in this chapter (prisoner's dilemma, pure coordination, assurance, battle of the sexes, chicken) in terms of the amount of tension between cooperation and self-interest of the players
What will be an ideal response?
Market income in the United States is distributed
A) more unequally than income after taxes and benefits. B) less unequally than income after taxes and benefits. C) the same as income after taxes and benefits. D) according to a big tradeoff between equity and equality
For a perfectly competitive firm in the short run, if the following conditions are true, P = MR = MC > AC, then
A. the firm is maximizing profits and is making an economic profit. B. the firm is not maximizing profits but is making an economic profit. C. the firm is not maximizing profits and is not making an economic profit. D. the firm is maximizing profits and is suffering an economic loss.