The most significant problem in trying to empirically measure the real rate of interest is that
A) there are so many different types of bonds.
B) expected inflation is unobservable.
C) interest rates fluctuate so much from day to day.
D) banks infrequently change the prime rate of interest.
B
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"More elastic" means
a. unchanging b. less desirable c. more desirable d. less responsive e. more responsive
Asymmetric information exists when one participant in a market transaction has more information than the other participant
a. True b. False
Modeled like the 50 states in the U.S., the European Union (EU) is a type of common market in which goods, services, people, and capital can freely flow to their highest-valued use across any member state
Indicate whether the statement is true or false
If your bank faces a 20 percent required reserve ratio and receives a cash deposit of $4,000 into a checkable deposit account, the maximum total amount of money possible after the banking system makes all loans is:
A. $3,200. B. $4,000. C. $16,000. D. $20,000.