One result of asymmetric information about people's ability to repay a loan is that:
A. loans will only be made to people who don't pay them back.
B. a bank could make many loans to people who don't pay them back.
C. lenders are better off than with perfect information.
D. banks will not make loans.
Answer: B
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The statement "The unemployment rate for teens is higher than that for adults" is
A) a political statement. B) a positive statement. C) a normative statement. D) an ethical statement.
Traveler's checks are included in
a. M1 but not M2. b. M2 but not M1. c. M1 and M2. d. neither M1 nor M2.
Without considering the effect that a change in the value of a currency might have on trade, the net effect of a contractionary fiscal policy is:
A. negative with respect to the exchange rate and positive with respect to the trade balance. B. positive with respect to the exchange rate and negative with respect to the trade balance. C. ambiguous with respect to the exchange rate, but positive with respect to the trade balance. D. ambiguous with respect to the trade balance, but positive with respect to the exchange rate.
Section 301 actions are more frequently used as a tool of trade policy, especially since the formation of the World Trade Organization
Indicate whether the statement is true or false