If velocity is more stable than the IS curve, then targeting the money supply
a. will be effective in stabilizing the LM curve and interest rates.
b. has the same effects as targeting interest rates.
c. will be less effective in stabilizing aggregate demand than targeting interest rates.
d. is not possible.
B
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The putting up of outside collateral is
A) one form of the moral hazard problem. B) one form of the adverse selection problem. C) a signal of a high-quality borrower. D) a signal of a low-quality borrower.
When a unit tax is placed on a supplier they are generally able to shift a portion of the burden to demanders by raising the prices paid by demanders
a. True b. False
Explain the concept of liquidated damages with an example
About one out of every _______ whites is poor.
Fill in the blank(s) with the appropriate word(s).