When interest rates in the bond market rise,
A) adverse selection problems increase.
B) adverse selection problems are mitigated.
C) moral hazard problems increase.
D) moral hazard problems are mitigated.
A
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The first major international trade agreement following World War II was the North American Free Trade Agreement (NAFTA)
Indicate whether the statement is true or false
Consider a short-run equilibrium in a perfectly competitive market. Suppose that the firms' average total cost and marginal cost schedules differ. In the short run,
A) all firms in the market must be able to make an economic profit. B) all firms produce equal amounts of output. C) some firms might incur an economic loss, but still produce output. D) some firms might make an economic profit and, as a result, shut down. E) all firms in the market must be able to make either positive or zero economic profit.
A reduction in the government's deficit causes:
a. No change in the monetary base. b. The monetary base to either rise or fall, depending on the state of the economy. c. The monetary base to fall. d. The monetary base to rise.
Interest and principal on long-term debt are considered
a. long-term liabilities b. fixed liabilities c. liquid liabilities d. general liabilities e. current liabilities