The presence of information and transactions cost result in all of the following EXCEPT:
A) reduced efficiency of financial markets.
B) higher returns for savers
C) some funds not being lent at all
D) borrowers need to pay more for funds
B
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If the United States' unemployment rate is 10 percent and the capacity utilization rate is 70 percent, the economy is in the midst of a ____________.
Fill in the blank(s) with the appropriate word(s).
In the above figure, the straight line between the lower left corner and the upper right corner shows
A) perfect equality in income distribution. B) perfect inequality in income distribution. C) that wealth rises as income rises. D) that household size rises as income rises.
If policymakers set a target for unemployment that is too low because it is less than the natural rate of unemployment, this can set the stage for a higher rate of money growth and
A) cost-push inflation. B) demand-pull inflation. C) cost-pull inflation. D) demand-push inflation.
The U.S. dollar bill
a. is fiat money b. cannot be used as a medium of exchange c. is backed by gold d. cannot be used as a store of value e. cannot be used as a payment for debts