A decrease in the money supply:
a. raises the interest rate, causing an increase in investment and an increase in GDP.
b. lowers the interest rate, causing an increase in investment and an increase in GDP.
c. raises the interest rate, causing a decrease in investment and a decrease in GDP.
d. lowers the interest rate, causing a decrease in investment and an increase in GDP.
e. lowers the interest rate, causing a decrease in investment and a decrease in GDP.
c
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"Mismatch" unemployment is another name for ________ unemployment
A) frictional B) structural C) cyclical D) natural
If Tom purchases and consumes an entire Pizza, which of the following is likely to be true?
a. The total utility of the first two pieces will be positive and the marginal utility of the second piece will be negative. b. The marginal utility of the second piece will be positive and the total utility of the first two pieces will be negative. c. The total utility of the first two pieces will be positive and the marginal utility of the second piece will be less than the marginal utility of the first piece. d. The marginal utility of the second piece will be positive and the total utility of the first two pieces will be less than the marginal utility of the first piece.
If the MPC equals 0.80, a $200 billion tax decrease will increase consumption in the first round by
A. $200 billion. B. $40 billion. C. $100 billion. D. $160 billion.
Commitment strategies:
A. are not necessary to reach a mutually beneficial equilibrium in repeated games. B. usually fail to work. C. are always needed to reach a mutually beneficial equilibrium in single-round games. D. are not observed in reality.