In the Friedman-Lucas money surprise model, a surprise increase in money supply growth
A) has no effect on inflation.
B) increases inflation less than in proportion to the growth rate of the money supply.
C) increases inflation in an equal proportion to the growth rate of the money supply.
D) increases inflation more than in proportion to the growth rate of the money supply.
B
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When a game has more than one Nash equilibrium
a. players will choose the strategies which maximize total welfare. b. players are likely to choose the strategies which minimize total welfare. c. it is difficult to predict which of the equilibria will occur or whether it is stable. d. it is difficult to predict which of the equilibria will occur but once one is reached it is likely to remain stable.
You're traveling in Ireland and are thinking about buying a new digital camera. You've decided you'd be willing to pay $125 for a new camera, but cameras in Ireland are all priced in euros
If the exchange rate is 0.85 euros per dollar, what's the highest price in euros you'd be willing to pay for a camera? A) 105 euros B) 106.25 euros C) 110.15 euros D) 147 euros
Which of the following forms of money will earn at least some interest income?
a. Gold coins b. Currency notes c. Traveler's checks d. Checkable deposits e. Gift checks
The costs involved with breaking a ban placed on a good depend on all of these except the:
A. punishment associated with rule breaking. B. likelihood of being caught. C. likelihood of being punished if caught. D. ability of the public or individuals to pay for those costs.