The quantity theory of money asserts that an increase in the quantity of money leads to an equal percentage increase in the price level in the long run
Indicate whether the statement is true or false
TRUE
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Under what circumstances will the equilibrium in a trust game be efficient?
What will be an ideal response?
The table above shows three production methods to produce 100 automobiles per day. If the price of labor is $20 per unit and the price of capital is $100 per unit, which of the three methods is economically efficient?
A) Method A only B) Method B only C) Method C only D) All three methods are economically efficient.
How can a bond investor hedge against a possible bear market in bonds?
A) sell futures contracts on Treasury notes B) buy futures contracts on Treasury notes C) going long in the spot market D) going short in the spot market
The use of "most-favored-customer" clauses is an example of
A) incenting members to maintain the cartel, because if they lower the price for one customer, they have to lower it for previous customers as well. B) incenting members to maintain the cartel, because if they raise the price for one customer, they have to raise it for previous customers as well. C) giving customers special perks for purchasing goods from members of the cartel. D) selling higher quality goods and services to favorite customers.