Sally would only agree to a second date with Andy if she sees him leave a generous tip for the waiter on their first dinner date. This is an example of a

a. Screening mechanism
b. Signaling mechanism
c. Way to waste money
d. None of the above


a

Economics

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The reserve ratio is 10 percent, banks do not hold excess reserves, and people hold only deposits and no currency. When the Fed sells $20 million worth of bonds to the public, bank reserves

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An important cause of recessions is an unexpected negative supply shift, such as higher oil prices.

Answer the following statement true (T) or false (F)

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In a monopolistically competitive market with Dixit-Stiglitz preferences, equilibrium price falls as the goods in the differentiated product market become more substitutable.

Answer the following statement true (T) or false (F)

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