Which of the following is an example of negotiation costs?
A) Isabel knows that other neighbors' sleep patterns must also be affected by the howling dogs in her neighborhood and sets out to find those neighbors.
B) Isabel is bound and determined to to find out which of her neighbors owns the howling dogs that are preventing her from getting a full night's slee
D
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The velocity of money increases with a _____, other things constant
a. fall in the inflation rate b. rise in the inflation rate c. rise in the employment rate d. fall in the exchange rate e. rise in the real interest rate
According to the rational expectations school, if the Fed announces a policy of rapid growth in the money supply, but then puts the brakes on money expansion without any announcement, which of the following is likely to be the short-run result?
a. An unexpected surge in aggregate demand b. An unexpected drop in aggregate demand. c. An anticipated surge in aggregate demand. d. An anticipated drop in aggregate demand. e. No change in aggregate demand.