The quantity equation implies that any decrease in the money supply has to lead directly to:
A. an increase in P.
B. a decrease in P.
C. an increase in Y.
D. a decrease in Y.
AACSB: Reflective Thinking
B. a decrease in P.
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Refer to above figure, which represents a duopoly industry. What would be the likely total industry payoff or profit?
A) $8 million B) $9 million C) $10 million D) $14 million E) zero
In a repeated game,
a. Cooperation is more likely than in a one-shot game b. Cooperation is less likely than in a one-shot game c. Cooperation can be either more or less likely than in a one-shot game d. The results are likely to be the same as in a one-shot game
Studies indicate that the demand for fresh tomatoes is much more elastic than the demand for salt. These findings reflect that
a. tomatoes are a necessity while salt is a luxury. b. it takes longer for consumers to adjust to a change in the price of salt than to a change in the price of tomatoes. c. salt will not spoil as easily as fresh tomatoes. d. more good substitutes exist for fresh tomatoes than for salt.
The Cost-Benefit Principle predicts that people will be less likely to smoke if the government:
A. increases taxes on cigarettes, effectively raising the price. B. increases taxes on smoking-cessation devices such as nicotine patches. C. invests more money in cancer research. D. subsidizes hospitals treating lung disease.