An increase in the expected future marginal product of capital would cause the IS curve to
A. shift up and to the right.
B. shift down and to the left.
C. remain unchanged.
D. remain unchanged if firms face borrowing constraints; otherwise, shift down and to the left.
Answer: A
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Figure 4.3 illustrates the demand for tacos. A decrease in the demand for tacos is represented by the movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
Explain why the money supply does NOT change when one individual writes a check to another
What will be an ideal response?
Input choices in the present are often affected by past decisions
a. True b. False Indicate whether the statement is true or false
In sequential games, the player who moves first:
A. has a first-mover advantage only when he or she is able to make a credible threat or promise to choose a dominated strategy. B. always has a first-mover advantage. C. has a first-mover advantage only when the second mover fails to choose the dominant strategy. D. sometimes has an advantage and sometimes has a disadvantage.