People with savings often deposit their funds in a commercial bank, rather than investing them directly with business enterprises, in order to
A) avoid the problems associated with asymmetric information.
B) earn the highest possible return for taking on the riskiest investments.
C) avoid the problems associated with financial intermediation.
D) All of the above are correct.
A
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The Solow model implies that continuous growth in productivity at a rate of one percent will result in continuous growth of output per worker at a rate of 1.43%
Thus, if at a point in time output per worker is 270 and productivity rises by one percent, the resulting level of output per worker is ________. A) 386 B) 273 C) 274 D) 277
Of the three types of price-discrimination, which is impossible to practice in any market in reality?
A) first-degree price discrimination B) zero-degree price discrimination C) third-degree price discrimination D) second-degree price discrimination
Monetarists advocate that the
A. money supply should be increased during inflation and reduced during recession. B. money supply should be reduced during inflation and increased during recession. C. money supply should be increased by a constant rate year after year. D. counter cyclical approach to fiscal policy be adopted.
Profits are higher as isoprofit curves move closer to the:
A. Bertrand output, QBertrand. B. monopoly output, QM. C. Cournot output, QCournot. D. peak of each isoprofit curve.