Why do people keep currency in their pockets when bank deposits pay interest?
A) Because banks might steal your money.
B) Because currency is more liquid.
C) Because bank deposits lose value due to inflation.
D) Because bank deposits lose value due to changes in interest rates.
B
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List and explain factors that determine the size of the expenditure multiplier in the expenditure model when prices are constant
What will be an ideal response?
In the above figure, if the price of milk rises, the budget line
A) rotates outward and the slope becomes steeper. B) shifts inward and its slope does not change. C) rotates inward and the slope becomes steeper. D) rotates inward and the slope becomes more shallow.
The Wii is a wildly popular home video game console released by Nintendo. The Wii system was first available in the U.S. in November, 2006 and has sold more than 30 million units as of August 2010. The Wii retails for $199
Suppose Ahmed is willing to pay $230, Lana is willing to pay $175, and Bodie is willing to pay $300 for a Wii. What is the value of Lana's consumer surplus? A) No consumer surplus is generated because Lana will not buy the Wii. B) $249 C) $225 D) $24
What is the dominant strategy in the prisoner's dilemma?
A) There is no dominant strategy. B) Each prisoner confesses because this is the rational action to pursue. C) Do nothing in the hope that the other prisoner will also do nothing. D) Do not confess because the other prisoner will most likely confess.