If money is neutral, then changes in the quantity of money
a. do not affect real output.
b. affect both nominal and real output
c. do not affect nominal output.
d. affect neither nominal nor real output.
a
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The winner's curse is more likely
a. when there is only one bidder b. when demand for the good being auctioned is increasing c. when the value of the good being auctioned is common knowledge d. when the value of the good being auctioned is uncertain e. when the marginal cost of information is low
The rule of reason was an antitrust law guideline that emphasized the importance of ____ over ____
a. price; quantity b. quantity; price c. law; the economy d. size; behavior e. behavior; size
If the Fed wanted to expand the money supply as part of an antirecession strategy, it could
a. increase the interest rate paid on excess reserves encouraging banks to extend more loans. b. decrease the interest rate paid on excess reserves encouraging banks to extend more loans. c. decrease the interest rate paid on excess reserves encouraging banks to hold excess reserves rather than extend more loans. d. increase the interest rate paid on excess reserves encouraging banks to hold excess reserves rather than extend more loans.
The time value of the option should:
A. approach infinity at expiration. B. increase the longer the time to expiration. C. decrease the longer the time to expiration. D. not change with time to expiration.