In the quantity theory of money, the assumption that aggregate output is fixed is based on the view that ________
A) wages and prices are perfectly flexible in the long run
B) the velocity of money is constant in the short run
C) the demand for real money balances is proportional to income
D) changes in the quantity of money lead to proportional changes in the price level
E) none of the above
A
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A monopolist will spend resources to advertise its product so long as
A) net profits increase. B) gross profits increase. C) demand increases. D) total revenue increases.
The famous historical example of the commitment strategy used by Cortes against the Aztecs is sometimes referred to as:
A. "burning your boats." B. "burning your bridges." C. "friendly fire." D. "putting all your eggs in one basket."
Either technological progress or cost increasing new government regulations will increase supply
a. True b. False Indicate whether the statement is true or false
Which of the following companies was broken up by the government?
A. Standard Oil B. Office Depot C. Wonder Bread D. Southwest Airlines