Suppose you earn $4,800 a month and spend exactly $160 in each of the 30 days. If your entire earnings are deposited in your checking account at the beginning of the month, then your average quantity of money demanded is
A) $160.
B) $1,200.
C) $2,400.
D) $4,800.
Ans: C) $2,400.
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In an unregulated market, healthcare consumers often
A) overestimate its benefit. B) cannot afford the care they need. C) overestimate their future need. D) All of the above are correct.
When the economy suffers a temporary negative supply shock and the monetary policy makers try to stabilize economic activity in the short run, then
A) aggregate demand curve shifts rightward. B) output will be at its potential. C) inflation rate will be higher. D) all of the above. E) both A and B.
In the short run in the Keynesian model, a sharp increase in oil prices would leave the economy with a ________ level of output and a ________ real interest rate
A) higher; lower B) lower; higher C) lower; lower D) higher; higher
Game theory suggests that in the trust game:
A. trustees will be untrustworthy and will forego potentially profitable investments. B. trustees will be trustworthy and will pursue all potentially profitable investments. C. trustees will be untrustworthy, but will pursue all potentially profitable investments. D. trustees will be trustworthy, but will forego potentially profitable investments.