Consider the accompanying payoff matrix.If both firms offer reduced rates, each earns ________, and if both firms keep their rates high, each earns ________.

Refer to above figure. What is the amount of efficiency loss resulting from imposition of the tariff?

What will be an ideal response?

Friedman's theory of money demand differs from Keynes' in that

a. Friedman assumes that the demand for money is highly elastic while Keynes assumes money demand is inelastic. b. Friedman assumes that the money demand function is highly stable while Keynes assumes it is unstable. c. Friedman assumes that there is only a speculative demand for money while Keynes also considers the precautionary and transactionary demands for money. d. Friedman assumes that the proportion of income held in the form of money is constant while Keynes believes it varies. e. both b and d.