Consider the salary of Mary Sue Nelson, a sales agent for Plain Truth Advertising. Her weekly compensation package is W = 1,000 + 0.4Q, where Q is her dollar volume of sales. Her productivity is Q = 200e + µ, where e denotes her hours of effort and µ, is a random variable with mean 0. If Mary Sue works an additional hour, the expected value of her wages rises by:

Increases in government spending result in ________ in the short run, and permanent increases in government spending result in ________ in the long run

A) complete crowding out; complete crowding out B) partial crowding out; partial crowding out C) partial crowding out; complete crowding out D) complete crowding out; partial crowding out

Money serves as all of the following EXCEPT

A) a medium of exchange. B) a unit of account. C) a store of value. D) a symbol that is made of or can be redeemed for a fixed amount of precious metal. E) a highly liquid asset.