The quantity theory of money seeks to explain the connection between money and
A) output. B) unemployment. C) prices. D) interest rates.
C
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The states that were hit hardest by the bank failures of the late 1980s
a. were primarily dependent on agriculture and the oil industry b. were primarily dependent on tourist revenues c. were located on the West coast d. were primarily dependent on fishing e. were located in the Northeast
Which statement is true?
A. Only monetary policy can affect aggregate demand. B. Only fiscal policy can affect aggregate demand. C. Both monetary and fiscal policy can affect aggregate demand. D. Neither monetary nor fiscal policy can affect aggregate demand.
Explain the “too big to fail” doctrine.
What will be an ideal response?
If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $15 million and the non-advertising firm will earn $1 million. Which of the following is true?
A. A dominant strategy for firm B is to advertise. B. A Nash equilibrium is for both firms to advertise. C. A dominant strategy for firm A is to advertise. D. All of the statements associated with this question are correct.