Expected utility is
A) the maximum utility that a person can get from a set of possible outcomes.
B) the probability-weighted mean of the utility gained from a set of possible outcomes.
C) negative for risk-averse people.
D) indeterminant for risk preferring people.
B
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Which of these transactions results in an increase in M1?
A) withdrawal of $100 cash from your checking account B) certificate of deposit matures, adding $520 to your checking account C) depositing a bank loan of $400 into your savings account D) depositing a $300 paycheck into your savings account E) none of the above
In the long run, if we ignore changes in velocity, inflation will:
A. equal money growth plus the growth in potential output. B. equal money growth less the growth in potential output. C. equal the rate of money growth. D. be zero.