In the United States, government purchases, as a percentage of real GDP, have generally declined since the 2001.

An increase in the money supply will increase aggregate demand

Indicate whether the statement is true or false

Goldie is indifferent between option A, which gives her $9,000 for sure, and option B, which gives her $3,000 with probability 1/3 or $18,000 with probability 2/3. Goldie's cost of risk for option B is

A) zero. B) $1,000. C) $3,000. D) $4,000.