In the basic closed-economy ISLM model, the money demand is a function of

A monopolist will be able to earn positive pure economic profits regardless of the price elasticity of demand

a. True b. False Indicate whether the statement is true or false

Paddy and Mick live in a small town. They burn coal to keep their houses warm at night. However, this burning of coal is harming the air quality of the neighborhood. Both Paddy and Mick could install air filters on their chimneys. These filters cost $50 each. Each filter provides a social benefit of $80, but those benefits are divided equally among Paddy and Mick. If both Paddy and Mick install

the filters, together they will _____. a. gain $10 b. gain $0 c. lose $20 d. gain $30