In the ultimatum game, when the allocator and the recipient care about fairness, how is the distribution of $20.00 affected?
a. Allocators receive everything, and recipients receive nothing.
b. Recipients usually reject offers of less than a 10 percent share.
c. Allocators usually offer recipients a very small share.
d. Allocators and recipients always end up sharing the $20.00 equally.
b. Recipients usually reject offers of less than a 10 percent share.
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If interest rates in Japan rise and those in the United States do not change, there is
A) a decrease in the supply of dollars. B) an increase in the supply of dollars. C) a downward movement along the supply curve for dollars. D) None of the above answers is correct.
To say that a price ceiling is binding is to say that the price ceiling
a. results in a shortage. b. is set below the equilibrium price. c. causes quantity demanded to exceed quantity supplied. d. All of the above are correct.
If the LM curve shifts down, this would be consistent with:
A) a rise in the money supply. B) a fall in interest rates. C) a rise in interest rates. D) both a rise in the money supply and a fall in interest rates.
How do we show the short-run impact of an increase in spending growth in our aggregate demand and aggregate supply model?
A. The AD curve shifts to the right, and inflation and real growth both decrease along the SRAS curve. B. The AD curve shifts to the right, and inflation and real growth both increase along the SRAS curve. C. The AD curve shifts to the left, and inflation and real growth both decrease along the SRAS curve. D. The AD curve shifts to the left, and inflation and real growth both increase along the SRAS curve.