Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an additional $5 billion between 15 and 20 percent, and so on. The investment demand curve for this economy is:

Which of the following will cause the U.S. money supply to expand?

a. a commercial bank uses excess reserves to extend a loan to a customer b. a commercial bank purchases U.S. securities from the Fed as an investment c. an increase in reserve requirements d. an increase in the discount rate

In the prisoners' dilemma game with Bonnie and Clyde as the players, the likely outcome is

a. a very good outcome for both players. b. a very good outcome for Bonnie, but a bad outcome for Clyde. c. a very good outcome for Clyde, but a bad outcome for Bonnie. d. a bad outcome for both players.