When there is an increase in the income tax rate, the aggregate expenditure line will _____
a. rotate downward
b. shift downward
c. rotate upward
d. shift upward
a
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In a prisoners' dilemma game, in the Nash equilibrium
A) neither player gets his or her best outcome. B) both players get their best outcome. C) one player gets his or her best outcome and the other player does not. D) collusion would not alter the outcome. E) Either answer A or C might be correct depending on whether the players communicate with each other or do not communicate with each other.
In 1975, New York City increased regulated taxi fares by 17.5 percent and expected taxi revenue to increase a like amount. The taxi commission believed taxi demand was
A. unit elastic. B. inelastic. C. elastic. D. perfectly inelastic.
Throughout the 1980s, the Federal Reserve
a. primarily targeted M1. b. primarily targeted M2. c. returned to targeting the federal funds rate. d. began targeting inflation.
Opportunism may occur when
A) both parties have limited information. B) both parties have full information. C) one party has information the other does not. D) All of the above.