The ground rules, customs, and conventions that govern the behavior of market participants are often referred to as institutions
Indicate whether the statement is true or false
TRUE
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In tit-for-tat, if your partner ________ in your first interaction, then you will ________ in your next interaction.
A. defects; cooperate B. defects; defect C. defects; refuse to play D. cooperates; defect
David increases the number of companies in which he holds stocks
a. This reduces risk's standard deviation and firm-specific risk. b. This reduces risk's standard deviation and market risk. c. This raises market risk, but lowers firm-specific risk. What happens to overall risk is unclear. d. This raises firm-specific risk, but lowers market risk. What happens to overall risk is unclear.
If the economy moves into recession, monetarists argue that the Fed should
A. Keep the money supply growing at a constant rate B. Keep the money supply fixed C. Increased the federal funds rate
In the long run, what effect does a government's deficit spending have on equilibrium real Gross Domestic Product (GDP)?
A. Higher government deficits will not raise equilibrium Gross Domestic Product (GDP) above the full-employment level. B. Higher government deficits will raise equilibrium Gross Domestic Product (GDP) above the full-employment level and also have an inflationary effect. C. Deficit spending will decrease the nation's equilibrium real Gross Domestic Product (GDP). D. Government deficit spending will increase equilibrium real Gross Domestic Product (GDP).