If information in the market for used motorcycles is symmetric and both buyers and sellers are equally ignorant, then
A) the market is efficient.
B) both good and bad motorcycles will sell for the same price.
C) if only good motorcycles are sold, the price would be higher.
D) All of the above.
D
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If the exchange rate is constant and U.S. imports increase, then in the foreign exchange market the
A) quantity of U.S. dollars supplied increases. B) supply of U.S. dollars increases. C) supply of U.S. dollars decreases. D) demand for U.S. dollars increases. E) quantity of U.S. dollars supplied decreases.
All of the following have enhanced the Fed's credibility in conducting monetary policy except
A) discontinuing the policy of announcing whether it considered the economy to be at greater risk of inflation or recession following each FOMC meeting. B) making the minutes of the open market committee meetings public. C) following through with changes it has announced. D) revealing the Fed's target for the federal funds rate.
M2 money includes all but which one of the following?
a. Checkable deposits. b. Savings accounts. c. Large repurchase agreements. d. Money market mutual accounts. e. Small time deposits.
Suppose that an MBA degree creates no externality because the benefits of an MBA are internalized by the student in the form of higher wages. If the government offers subsidies for MBAs, then which of the following statements is correct?
a. The equilibrium quantity of MBAs will equal the socially optimal quantity of MBAs. b. The equilibrium quantity of MBAs will be greater than the socially optimal quantity of MBAs. c. The equilibrium quantity of MBAs will be less than the socially optimal quantity of MBAs. d. There is not enough information to answer the question.