The real-balance effect implies that when
A) the price level decreases, the value of money balances held by individuals, firms, government, and foreigners increases and spending decreases.
B) the price level increases, the value of money balances held by individuals, firms, government, and foreigners increases and spending increases.
C) the price level increases, the value of money balances held by individuals, firms, government, and foreigners decreases and spending decreases.
D) the price level decreases, the value of money balances held by individuals, firms, government, and foreigners decreases and spending decreases.
C
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Refer to Figure 11.4. Which diagram illustrates the effect of an increase in government spending?
A) A B) B C) C D) D
Suppose the population of Timmy Town is 1000 people and the working-age population is 800. If 200 of these people are unemployed, the unemployment rate in Timmy Town is
A) 1/4 × 100. B) 1/5 × 100. C) 1/8 × 100. D) 2 percent. E) There is not enough information provided to calculate the unemployment rate.
Refer to the above payoff matrix (in years of sentence) for two people (A and B) charged for robbery. Which of the following is the outcome of the dominant strategy without cooperation?
A) Both A and B confess. B) Both A and B do not confess. C) A confesses while B does not confess. D) A does not confess while B confesses.
If the perfect competitor is making a profit, its output will be ____ it's most efficient output.
A. more than B. equal to C. less than