The existence of asymmetric information can give rise to adverse selection
a. True
b. False
A
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Aggregate demand refers to the relationship between
A) the price level and the quantity of real GDP supplied. B) prices and the quantity of a good supplied. C) the price level and the quantity of real GDP demanded. D) prices and the quantity of a good demanded.
If an individual moves money from a money market deposit account to currency
A) M1 increases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 increases and M2 decreases.
Return to deficit after 2001 was due to
A) a drop in the revenue share. B) an increase in the expenditure share. C) both a drop in the revenue share and an increase in the expenditure share. D) recession.
The effective exchange rate:
a. Is a measure of the weighted-average value of a nation's currency in terms of a basket of other currencies. b. Is needed to translate prices of one currency into prices of another currency. c. Reflects the price of one currency in terms of another currency. d. Takes historic inflation rates into account.