Starting from equilibrium in the ISLM framework, an increase in money demand results in
A) a rise in income and the interest rate.
B) a rise in income and a decline in the interest rate.
C) a decline in income and the interest rate.
D) a decline in income and a rise in the interest rate.
D
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The table above displays the possible outcomes for Bob and Joe, who have been arrested for armed robbery and car theft. Which of the following is TRUE?
A) If Joe confesses, Bob should not confess. B) If Bob confesses, Joe should confess. C) The dominant equilibrium is that Joe and Bob both serve 2 years. D) If Joe does not confess, Bob should not confess.
One big difference between tariffs and quotas is that tariffs:
a. raise the price of a good while quotas lower it. b. generate tax revenues while quotas do not. c. stimulate international trade while quotas inhibit it. d. hurt domestic producers while quotas help them. e. give the same outcome as free trade while quotas do not.