Refer to the scenario above. Which of the following is likely to happen if the service center has a reputation of trustworthiness?
A) You will trust the mechanic and he will cooperate.
B) You will trust the mechanic but he will defect.
C) Neither of you will gain from trade.
D) Only the mechanic will gain.
A
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In a closed economy with fixed or autonomous (non-income dependent) taxes, the balanced budget government purchases multiplier is negative
Indicate whether the statement is true or false
If the dollar appreciates (becomes stronger) this causes:
a. the relative price of U.S. goods to increase for foreigners. b. the relative price of foreign goods to decrease for Americans. c. U.S. exports to fall and U.S. imports to rise. d. a balance of trade deficit for the U.S. e. all of these.
Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then its loan balance can increase by a maximum of:
a. $0. b. $90. c. $100. d. $900. e. $910.
The "competition" in monopolistically competitive markets is most likely a result of having many sellers in the market
a. True b. False Indicate whether the statement is true or false