Ceteris paribus, which of the following situations would result in the largest quantity of money demanded?
a. When nominal GDP = $1.4 trillion and the interest rate is 3 percent.
b. When nominal GDP = $1.4 trillion and the interest rate is 6 percent.
c. When nominal GDP = $1.2 trillion and the interest rate is 5 percent.
d. When nominal GDP = $800 billion and the interest rate is 4 percent.
a
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Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. 
If Candidate X is running for office against Candidate Z, then:
A. all voters to the left of Z will vote for X, and all voters to the right of Z will vote for Z. B. all voters who would have voted for Y will vote for X. C. Candidate X might win. D. Candidate Z will win.
Suppose that in Paraguay, one of the poorest countries in the Americas, only two of the goods that are produced can compete in world markets, tea and DVD players. Given this success in exporting, Paraguay
a. should specialize only in DVD players since tea production is an old industry. b. should specialize in the production of tea, since its people are probably too poor to buy DVD players. c. should stop exporting both goods and produce more food products for its people. d. is better off producing both goods in which it has a comparative advantage, relative to all other goods.
In simultaneous move Bayesian games, a player's beliefs are fully given by the probability distribution used by "Nature" to assign types.
Answer the following statement true (T) or false (F)
A sales tax on sellers of a good shifts the demand curve leftward because the tax raises the price that consumers must pay
Indicate whether the statement is true or false