Which of the following is consistent with the equation of exchange?
A) Total spending must equal the total sales revenues of business firms.
B) The money supply multiplied by velocity must equal GDP.
C) The money supply multiplied by velocity must equal the price level times Real GDP.
D) a and b
E) a, b and c
E
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The figure above shows the costs and benefits associated with producing paper. What is the marginal external cost when output is 6 tons?
A) $1,600 B) $1,200 C) $1,000 D) $600 E) $400
Focal point equilibria are consistent with:
A. a nonmarket economy. B. the "you get what you pay for" rule. C. rational choice theory. D. the "follow the leader" rule.
Under present U.S. federal law, which one of the following is a government-inhibited good?
A. cocaine B. medical care C. education D. housing
A trigger strategy is one in which a player
A) cooperates in the current period if the other player cooperated in the previous period, but cheats in the current period only if the other player cheated in the previous period. B) cheats in the current period if the other player cooperated in the previous period, but cooperates in the current period if the other player cheated in the previous period. C) cooperates in the current period if the other player has always cooperated, but cheats forever if the other player ever cheats. D) cheats in the current period if the other player has always cheated, but cooperates forever if the other player has ever cooperated.