Disclosure laws:
A. are an example of how government attempts to assert control over what we eat.
B. can result in information overload.
C. always help solve information asymmetry, but can cause other problems.
D. All of these statements are true.
Answer: B
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When the Federal Reserve lends reserves to depository institutions, it charges them interest. That interest rate is called the
A) federal funds rate. B) loan rate. C) prime rate. D) discount rate.
Is a typical person likely to gather more information when buying a new computer or when voting for a member of the U.S. Senate? Why?
What will be an ideal response?
If a country's currency has a market driven value that is higher than economic theory would suggest, the currency is considered to be
A) overvalued. B) undervalued. C) overestimated. D) in arbitrage.
If you wanted to measure changes in fiscal policy intentions, you should use the
a. capital budget. b. actual deficit. c. inflation-accounted deficit. d. structural deficit.