Printing money to meet government budget deficits:
A) helps combat inflation. B) increases real income.
C) increases the demand for money. D) acts as a tax on the citizens in an economy.
D
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Refer to the scenario above. The real GDP of the country in Year 2 was ________
A) $32,000,000 B) $1,420,000 C) $240,000 D) $1,680,000
The real exchange rate is
A) the price of one currency in terms of another. B) the price of domestic goods relative to foreign goods. C) the quantity of gold that can be purchased by one unit of currency. D) the difference in interest rates between two countries.
Jerry spends his entire income on two goods, Bran and Tea. Every month he spends half of his income on each of these goods. Jerry's income elasticity of demand for Bran is .75. What is the income elasticity of demand for Tea?
A) 1.25 B) .75 C) 1 D) Unknown with the information provided
The prisoners' dilemma is used to illustrate the basic idea that
a. oligopolistic firms would be better off if they collude, but each has an incentive to cheat on the collusive agreement. b. oligopolistic firms are always worse off when they collude. c. oligopolistic firms never have an incentive to cheat on collusive agreements, unlike prisoners. d. students who cheat on economics exams end up in jail.