Referring to a bank's t-account, the difference between total assets and total liabilities is called

An individual has preferences consistent with prospect theory. The person takes their current wealth of $10,000 (plus any certain additions) as their reference point. Gains above this reference point are worth +1 util. Losses below this reference point are worth -2 utils. The person is faced with two choice problems. The first involves a choice between (A) no gamble and (B) a gamble with an equal

chance of winning $1,800 and losing $1,000 . The second choice problem, the person first has $1,000 taken away (resulting in the adjustment of the reference point). The choice is then between (C) being given back $1,000 for sure and (D) an equal chance of winning $2,800 or nothing. What choices would the person make? a. A and C. b. A and D. c. B and C. d. B and D.

According to Friedman, in which of the following situations is the economy in long-run equilibrium?

A) The average inflation rate over the past five years is 2 percent and the expected inflation rate is 2 percent. B) The expected economic growth rate is 3 percent and the actual inflation rate is 3 percent. C) The expected economic growth rate is 2 percent and the expected inflation rate is 2 percent. D) The expected inflation rate is 3 percent and the actual inflation rate is 3 percent.