The student government associations at several universities have experimented with purchasing bicycles to leave around campus for everyone's use. Anyone who needs the bike can use it, and they are not allowed to lock the bike up or take it home, but rather must leave it on campus for someone else to use. Economic theory would predict that
a. students will take better care of these commonly owned bicycles than they do their own bicycles.
b. students will take equally as good care of these commonly owned bicycles as they do their own bicycles.
c. students will not take as good of care of these commonly owned bicycles as they do their own bicycles.
d. because universities have a lot of money, these bikes will be better maintained than the ones owned privately by college students who tend to have little money.
C
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a. True b. False Indicate whether the statement is true or false
Suppose the Fed purchases $100 million of U.S. government securities from the public. How will this affect the money supply and the national debt?
a. The money supply will increase; the national debt will decline. b. The money supply will decline; the national debt will increase. c. The money supply will increase; the national debt will be unaffected. d. The money supply will decrease; the national debt will be unaffected.