The "Lemon's" argument helps to explain why
A. physical depreciation is the only reason for the sharp price differential between new and used cars.
B. physical depreciation is an insufficient reason for the sharp price differential between new and used cars.
C. new and used cars sell for more than their intrinsic value would suggest.
D. used cars fail to satisfy consumer demands for transportation.
Answer: B
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Other things equal, a decrease in the cost of capital would be associated with an upward shift of the investment function and, hence, with a rise in aggregate expenditures
a. True b. False Indicate whether the statement is true or false
Mr. Kohl made $44,000 in 2004, the base year. By 2010 he was earning $60,000. If the CPI had risen to 120 by 2010, how much were Mr. Kohl's real wages that year, and by what percentage had they changed?
What will be an ideal response?
A key use of interest-rate swaps is to:
A. eliminate risk for both parties involved in the transaction. B. manage government revenues. C. earn the fees for constructing the swaps. D. provide a hedge against interest-rate risk.
How can changes over time of the average height of the people in a country help to indicate the standard of living in a country?
What will be an ideal response?