The monetary transmission mechanism that assumes that money supply growth stimulates the economy primarily by encouraging investment is
A. the post-Keynesian transmission mechanism.
B. the interest-rate-based transmission mechanism.
C. pre-Keynesian transmission mechanism.
D. the classical transmission mechanism.
Answer: B
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A dominant strategy is: a. one that maximizes the social welfare
b. one that maximizes profit. c. one that maximizes a player's welfare, regardless of the behavior of a competitor. d. one that maximizes a player's welfare, given the actions of a competitor.
Which of these statements does not apply to market economies?
a. Prices prevent decentralized decision making from degenerating into chaos. b. Prices coordinate the actions of millions of people with varying abilities and desires. c. Prices ensure that anyone who wants a product can get it. d. Prices ensure that what needs to get done does in fact get done.
Instrumental variables requires that the variable not be correlated with the outcome variable.
A. True B. False C. Uncertain
The long-run supply curve for a competitive, decreasing-cost industry is downward sloping.
Answer the following statement true (T) or false (F)