Both a defendant and plaintiff believe there is an 80 percent chance that the plaintiff will win $500,000 and a 20 percent chance that the plaintiff will lose and be awarded nothing (zero). If the plaintiff's litigation cost is $150,000 and the defendant's litigation cost is $200,000, the plaintiff would be willing to accept any amount greater than ________ to settle.
A) $150,000
B) $600,000
C) $200,000
D) $250,000
D) $250,000
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As interest rates rise, the opportunity cost of holding money ________ and the demand for money ________
A) rises; rises B) rises; falls C) falls; rises D) falls; falls
What is the distinction between a movement along the consumption function and a shift of the consumption function?
a. A movement along the consumption function is caused by a change in income and a shift of the consumption function is caused by a nonincome determinant. b. A movement along the consumption function is caused by a change in interest rates and a shift of the consumption function is caused by an income determinant. c. A movement along the consumption function is caused by a change in net wealth and a shift of the consumption function is caused by an income determinant. d. There is not distinction between the two, they are the same movement.