To minimize the asymmetric information problem, the government is called on to require and enforce full disclosure of information
a. True
b. False
Indicate whether the statement is true or false
True
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If the currency drain ratio is 0.2 and the desired reserve ratio is 0.03, the money multiplier is
A) 5.22. B) 6.67. C) 0.76. D) 4.46. E) 3.23.
Which of the following would increase GNP in the United States?
A) an increase in the production of Japanese-owned Toyota cars in the U.S. B) an increase in the production of Japanese-owned Toyota cars in Mexico C) an increase in the production of Mexican-owned Grupo Minsa corn in the U.S. D) an increase in the production of U.S.-owned General Motors cars made in Mexico
The important effects of ZIRP, QE, and Operation Twist include the following, except:
A. The federal government was able to fund huge budget deficits at lower than normal interest rates B. The Fed became the federal government's primary lender, financing a huge portion of the budget deficit C. Government spending in effect became largely funded by "newly printed" money D. The Fed's monetary policy somewhat offset the effects of the federal government's fiscal policy
Rent-seeking behavior is limited to those industries that lobby for government help in preserving monopoly powers.
Answer the following statement true (T) or false (F)