In the classical theory of aggregate demand, a decrease in the propensity to hold money will
a. shift the aggregate demand curve up.
b. Shift the aggregate demand and supply curves up and to the right.
c. have no effect on aggregate demand as the money supply changes.
d. will increase the money supply
A
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Refer to Figure 8.1. If Charla and Mirna agree to pay each other $350 to install the pollution-control device on their heating systems, the dominant strategy for the players would be for Charla to play ________ and for Mirna to play ________
A) Install; Install B) Install; Don't Install C) Don't Install; Install D) Don't Install; Don't Install
What is a model? Can you think of a model that you might use in your everyday life?
What will be an ideal response?
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