The simple quantity theory of money predicts that an increase in M of 5 percent will lead to
A) an increase in P of 5 percent.
B) an increase in P of less than 5 percent.
C) an increase in P of more than 5 percent.
D) a decrease in P of 5 percent.
E) a decrease in P of more than 5 percent.
A
You might also like to view...
Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed below.CustomerReservation Price($/Rental)A22B16C12D8E6F4 Suppose Island Bikes knows that customers whose reservation prices are at least $10 always rent bikes before noon, while those whose reservation prices are below $10 never do so. If Island bikes charges a different price in the morning and in the afternoon, then what will be the total economic surplus?
A. $49 B. $3 C. $9 D. $41
Explain whether it is possible for a country to have a comparative advantage in the production of a product without having an absolute advantage in the production of that product
What will be an ideal response?
The certainty effect shows that
A) people are overconfident about their choices. B) people prefer certain outcomes to uncertain outcomes even when the expected value of the uncertain outcome is lower. C) people prefer certain outcomes to uncertain outcomes even when the expected value of the uncertain outcome is higher. D) people prefer certain outcomes to uncertain outcomes even when the expected values are the same.
When the government charges an output tax to eliminate an externality, it forces the manufacturer to ________ the negative externality
A) charge customers for B) internalize C) stop producing D) increase the production of