A consumer goes to purchase a TV advertised for $300. As he is checking out, the clerk informs him of a $20 rebate offer for the TV, which he fills out and receives in 3 months. What can one can infer about the consumer's reservation price?
A. It was exactly $300.
B. It was at least $300.
C. It was at most $280.
D. It was at least $280 but less than $300.
Answer: B
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All of the following actions shift the aggregate demand curve to the right EXCEPT
A) the Fed raises the interest rate. B) an increase in government transfer payments. C) inflation is expected to rise next year. D) an increase in expected future profit. E) a decrease in taxes.
Which of the following had prompted the Chinese authorities to stand ready to buy or sell dollars steadily and in large volume?
a. Huge current account deficit b. Currency pegged to the dollar c. Floating rate policy d. Adherence to the old gold standard
In the simple Keynesian model, there are three simplifying assumptions. One of these assumptions is:
A) no consumption B) no investment C) no exports or imports D) a and b E) a, b, and c
Jane wants to buy a beautiful doll as a gift for her sister's birthday. She knows that the same product is offered in different shops with prices of $120, $100, and $80 with odds of one-third of finding each price. She just stopped at a shop and knows that the price is $100. If the search cost is $8 per time, what should she do?
A. Accept the offer in hand. B. She should toss a coin. C. Search once more and decide again upon knowing the price. D. Insufficient information to determine.