Diffusion of responsibility exists when
A) the members of a group believe one thing but mistakenly assume that most of the other members believe something else.
B) a group of bystanders all agree that something needs to be done but each feels less personal responsibility for taking action because each perceives that there are others who could take action.
C) a majority of people in a group do not have the intellectual capacity of arriving at a viable solution to a public goods problem.
D) the least-capable member of a group exerts his influence over the rest of the group when trying to arrive at a decision on how to internalize an externality.
B
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According to the quantity theory of money:
a. the velocity of money is highly variable. b. the money supply directly affects real GDP. c. the money supply inversely affects velocity. d. real GDP increases as the price level increases. e. P = MV/Q.
The policy mix that the Clinton administration sought in early 1993 was a
A. smaller budget deficit and tighter monetary policy. B. smaller budget deficit and looser monetary policy. C. larger budget deficit and looser monetary policy. D. larger budget deficit and tighter monetary policy.