According to liquidity preference theory, if the price level
a. fell, the interest rate would rise, and induce investment spending to rise.
b. fell, the interest rate would fall, and induce investment spending to fall.
c. rose, the interest rate would rise, and induce investment spending to fall.
d. rose, the interest rate would fall, and induce investment spending to rise.
c
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Two players are trying to maximize their payoffs in the matrix below: Player 2? Move AMove BPlayer 1Move A (50,20)(40,80)?Move B(25,80)(10,10)What is the Nash equilibrium?
A. Player 1 will Move A and Player 2 will Move A B. Player 1 will Move B while Player 2 will Move B C. Player 1 will Move A while Player 2 will Move B D. Player 1 will move B and Player 2 will Move B
Subsidizing medical services through Medicare
A. makes medical services available to a large percentage of the population, who otherwise could not afford them. B. drives a wedge between the price received by providers and the price perceived by consumers. C. is a relatively low percentage of U.S. GDP compared to other nations. D. All of the above are true. E. Only A and B are true.
Which of the following statements is true about a command economy?
a. Shortages occur because of complexities in the planning process. b. Planners determine what, how many, and for whom goods and services are to be produced. c. Planners often allocate goods and services through a rationing system. d. The quality of produced goods and services tends to be inferior. e. All of these are true.
The interest rate charged by the Fed to member banks is called the _____
Fill in the blank(s) with correct word