During the 1930s, banks found it hard to solve the asymmetric information problem between borrowers and lenders, because ____
a. Many borrowers lacked adequate collateral
b. Changing federal bank regulations created uncertainty
c. The fall in the stock of money reduced aggregate demand
d. Interest rates had fallen to "liquidity trap" levels
a. Many borrowers lacked adequate collateral
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Suppose a monopolist has TC = 100 + 10Q + 2Q2, and the demand curve it faces is p = 90 - 2Q. What will be the price, quantity, and profit for this firm?
What will be an ideal response?
Unemployment rises and falls in the same direction as output over the business cycle
a. True b. False Indicate whether the statement is true or false
Because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to
a. raise productivity. Other things the same, this increase will be larger in a poor country. b. raise productivity. Other things the same, this increase will be larger in a rich country. c. reduce productivity. Other things the same, this decrease will be larger in a poor country. d. reduce productivity. Other things the same, this decrease will be larger in a rich country.
In the late 1990s, Thailand, Malaysia, and Indonesia all experienced sharp declines in the value of their currencies; this resulted in economic instability and crisis. The collapse in the values of their currencies undermined their development by:
A. decreasing political instability. B. decreasing population growth. C. increasing corruption. D. reducing investment.