Investors may be caught by surprise when devaluation occurs, particularly if the government does not disclose its international reserve position in a timely and informative manner
a. True
b. False
Indicate whether the statement is true or false
True
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What is one of the most important benefits of the Internet?
A) The Internet has increased asymmetric information. B) The Internet has reduced asymmetric information. C) The Internet has increased moral hazard. D) The Internet has increased transaction costs.
The Volcker disinflation
a. had virtually no impact on output, just as the classical dichotomy suggested. b. was associated with rising output, perhaps due to expansionary fiscal policy. c. caused output to fall, but by less than the typical estimate of the sacrifice ratio suggested. d. None of the above is correct.
The market for oil-change can be described as a market in which monopolistic competition prevails. This means that collusion among garages that change oil is ____________ and firms engage in _________ behavior.
a. common; cooperative b. common; uncooperative c. rare; uncooperative d. rare; cooperative
Which of the following gives the correct relationship between nominal and real interest rates?
A. Nominal interest rate + real interest rate = expected inflation rate B. Real interest rate = nominal interest rate + expected inflation rate C. Nominal interest rate = real interest rate - expected inflation D. Nominal interest rate = real interest rate + expected inflation rate