The essence of the monetarists view on crowding out is that higher government spending which is not financed by new money creation simply
A) reduces private spending by an equal amount.
B) decreases the demand for money.
C) increases investment.
D) increases aggregate demand in the in the long run.
A
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The value of a slice of pizza to a consumer is equal to
A) its marginal benefit. B) the maximum price the consumer is willing to pay. C) the consumer surplus. D) Both answers A and B are correct. E) Both answers B and C are correct.
If Happy Feet chooses to No Ad and Best Nails then chooses to No Ad, Happy Feet earns ________ million in net profit and Best Nails earns ________ million.
Happy Feet wants to prevent Best Nails from entering the nail salon market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Happy Feet and Best Nails have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $1; $4 B) $2; $3 C) $4; $1 D) $5; $1
During the EMS crisis in 1992,
A) all the EMS countries abandoned the system. B) Germany abandoned the system. C) England and Italy abandoned the system. D) France was put in charge of the system. E) all the EMS countries stood firm, and refused to change central parities.
Refer to the information provided in Figure 28.8 below to answer the question(s) that follow.
Figure 28.8Refer to Figure 28.8. Expected inflation at Point B equals
A. 4%. B. 5%. C. 6%. D. cannot be determined from the figure.