The quantity theory of money implies that if the money stock were to double, the price level would
a. fall by one half.
b. rise, but only slightly.
c. also double.
d. be unchanged.
e. all of the above.
C
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Which of the following activities can give rise to a positive externality?
A) Jogging every morning B) Getting a flu vaccination C) Consuming herbal products D) Buying a pair of gloves
Exhibit 6-4 Total utility for multiplex tickets, video rentals, and popcorn Total Utilityfrom Multiplex Tickets Total Utilityfrom Video Rentals Total Utilityfrom Popcorn 1 movie (30 utils) 1 video (14 utils) 1 bag (8 utils) 2 movies (54 utils) 2 videos (24 utils) 2 bags (13 utils) 3 movies (72 utils) 3 videos (30 utils) 3 bags (15 utils) 4 movies (84 utils) 4 videos (32 utils) 4 bags (16 utils) In Exhibit 6-4, assume the Multiplex tickets cost $6 each, video rentals cost $2 each, and bags of popcorn cost $1 each. What is the marginal utility of renting a third video?
A. 6 utils. B. 8 utils. C. 10 utils. D. 30 utils.