Which of the following statements is true
a. in market equilibrium there are unconsummated value-creating transactions
b. in market equilibrium there are unconsummated wealth-destroying transactions
c. in market equilibrium there are no unconsummated wealth-creating transactions
d. none of the above
c
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Nick has $300 a month to spend on detailing his sports car or buying bottles of good wine. It costs $100 to have his car detailed and $50 for a bottle of wine. He currently buys four bottles of wine and has his car detailed once a month. If the price of detailing his car decreased to $75, Nick's budget constraint:
A. would shift straight outward, because he is relatively wealthier. B. would rotate and change slope because relative prices have changed. C. would shift straight inward because he is relatively wealthier. D. One cannot determine what would happen without knowing Nick's marginal utility of each good.
Which of the following is consistent with the idea that high money supply growth leads to high inflation?
a. the quantity theory and evidence from four hyperinflations during the 1920's
b. the quantity theory but not evidence from four hyperinflations during the 1920's
c. evidence from four hyperinflations during the 1920's but not the quantity theory
d. neither the quantity theory nor evidence from four hyperinflation during the 1920's