If real output and velocity are stable and predictable, then the equation of exchange can be used to derive a simple relationship between:
a. the money supply and the price level
b. the money supply and the interest rate.
c. the money supply and the foreign exchange rate.
d. unemployment and aggregate demand.
e. unemployment and nominal GDP.
a
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If Joe and Sarah are faced with the game in the figure shown, we can see that:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. Joe has a dominant strategy, but Sarah does not.
B. Sarah has a dominant strategy, but Joe does not.
C. neither student has a dominant strategy.
D. both students have a dominant strategy.
Given an opportunity cost of 10 bicycles per 1 sewing machine in Germany and 20 bicycles per 2 sewing machines in Hungary,
a. Neither country has a comparative advantage in the production of either good. b. Germany has a comparative advantage in the production of sewing machines. c. Germany has an absolute advantage in the production of sewing machines. d. Hungary has an absolute advantage in the production of bicycles. e. Hungary produces more bicycles than Germany does.
At higher interest rates, the:
A. money supply is higher. B. money supply is indeterminate. C. quantity of money demanded is higher. D. quantity of money demanded is lower.
Refer to the information provided in Figure 7.5 below to answer the question(s) that follow. 
Figure 7.5Refer to Figure 7.5. Diminishing marginal returns set in after the ________ worker is hired.
A. first B. fifth C. eighth D. sixteenth