Credible promises and hostage mechanisms can support a continuous stream of cooperative exchanges except when
a. the promisor is better off fulfilling than ignoring his promise
b. neither party has a prior dominant strategy
c. the hostage can be revoked for just causes
d. the hostage is more valuable than any given exchange
e. the hostage is difficult to replace
c
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The Federal Reserve
a. prints money for use by individuals during transactions. b. is a nation's monetary authority, responsible for controlling the money supply. c. issues government debt. d. makes loans and takes deposits from individuals. e. collects taxes from corporations only while the Treasury Department collects personal income and Social Security taxes.
Union membership in the United States has fallen compared to what it was in the 1950s
a. True b. False Indicate whether the statement is true or false
Ray, a marketer at a global firm, monitors the exchange rate of countries in which the firm sells its products. Ray is most likely concerned about changes in ________.
A) operating expenses B) exporting policies C) product demand D) quality control
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary