Because of the presence of asymmetric information problems in credit markets, an expansionary monetary policy causes a ________ in net worth, which ________ the adverse selection problem, thereby ________ increased lending to finance investment
spending. A) decline; increases; encouraging
B) rise; increases; discouraging
C) rise; reduces; encouraging
D) decline; reduces; discouraging
C
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When there is a negative externality, the marginal private cost of production ________ the marginal social cost of production
A) eliminates B) is less than C) is equal to D) is greater than
Many industries are regulated in the United States, from railroads and electric utilities to cable TV.
Answer the following statement true (T) or false (F)
Aggregate supply is the:
A. total quantity of the production of all the households in the economy. B. market value of the total quantity of goods and services supplied in the economy. C. total quantity of goods and services demanded in the economy. D. market value of the total quantity of goods and services demanded in the economy.
Using a graph, compare the labor-market equilibrium under perfect competition and monopsony. Explain.
What will be an ideal response?