Which of the following is an example of signaling in a market with asymmetric information?
A) Certification of used cars by third parties
B) Rent controls imposed by the government
C) Discounts offered by sellers during the holiday season
D) Taxation of alcoholic beverages
A
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The supply of loanable funds curve has a positive slope because the
A) lower the real interest rate, the higher the return to saving. B) lower the real interest rate, the lower the return to saving. C) average return in the stock market is directly related to the real interest rate. D) quantity of investment increases when the real interest rate increases. E) higher the real interest rate, the lower the return to saving.
The major source of financing in the Anglo Saxon model is:
a. Securities markets b. Secondary market financing c. The sale of treasury bonds d. Bank financing e. None of the above
A currency bailout
A. Is considered to be a dangerous move by the International Monetary Fund. B. Is considered to be a dangerous move by the central banks of the strongest economies worldwide. C. Occurs when money is borrowed from an economy to increase the value of its currency. D. Can help avoid a situation in which a weakness in one currency undermines other currencies.
If demand for a good increases and supply remains constant equilibrium price:
a. Will increase, and equilibrium quantity will decrease b. And quantity will both increase c. And quantity will both decrease d. Will decrease, and equilibrium quantity will increase