Computers and computer software are complements. A decrease in the price of computers is likely to
A. decrease the demand for computers.
B. decrease the demand for computer software.
C. increase the demand for computers.
D. increase the demand for computer software.
D. increase the demand for computer software.
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A way to summarize the actions and payoffs of a sequential game is to use a:
A. payoff tree. B. decision matrix. C. flowchart. D. decision tree.
In order to promote growth, the poorest countries-in contrast to the middle-level and rich countries-need most to:
A. improve their infrastructure. B. invest in human capital. C. increase their capital stock. D. improve their legal and political environments.
If the MPC in the United States was high, it would increase the value of the multiplier.
Answer the following statement true (T) or false (F)
Holding the level of prices fixed implies that a given decrease in aggregate demand
A. has the same effect on real GDP as when prices are more flexible. B. will have a larger effect on real GDP than would be the case if prices were more flexible. C. has a smaller effect on nominal GDP than when prices are more flexible. D. will have a smaller effect on real GDP than would be the case if prices were more flexible.