If the central bank increases the money supply, then in the short run prices
a. rise and unemployment falls.
b. fall and unemployment rises.
c. and unemployment rise.
d. and unemployment fall.
a
Economics
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The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) is
A) equal to one. B) greater than one. C) negative. D) less than one.
Economics
If Florida issues an alligator hunting permit to Jackson, who values an alligator hunt at $2,500, instead of Oliver, who values an alligator hunt at $4,000, the $1,500 difference in values is
A) a deadweight loss. B) a negative externality. C) a transactions cost. D) the social cost of the alligator hunt.
Economics