The quantity theory of money asserts that an increase in the quantity of money leads to an equal percentage increase in the price level in the long run

To reduce moral hazard problems, banks include restrictive covenants in loan contracts. In order for these restrictive covenants to be effective, banks must also

A) monitor and enforce them. B) be willing to rewrite the contract if the borrower cannot comply with the restrictions. C) trust the borrower to do the right thing. D) be prepared to extend the deadline when the borrower needs more time to comply.

Which of the following forces us to choose among alternatives?

a. Value b. Scarcity c. Rarity d. Market mechanism