Suppose the new doctor you found in the yellow pages turns out to be a charlatan. This is an example of
a. natural selection
b. moral hazard
c. hidden actions
d. external costs
e. hidden characteristics
E
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If the Fed conducts an open market sale of bonds, which of the following will happen?
a. The interest rate will decrease, the aggregate expenditure line will shift upward and the aggregate demand curve will shift rightward b. The interest rate will decrease, the aggregate expenditure line will shift downward and the aggregate demand curve will shift rightward c. The interest rate will increase, the aggregate expenditure line will shift downward and the aggregate demand curve will shift leftward d. The interest rate will decrease, the aggregate expenditure line will shift upward and the aggregate demand curve will shift leftward e. The interest rate will increase, the aggregate expenditure line will shift downward and the aggregate demand curve will shift rightward.
The increased costs of transactions caused by inflation are known as _____
a. menu costs b. shoe-leather costs c. unit-of-account costs d. direct costs
During the financial crisis of 2007-2009, the deposit expansion multiplier plummeted to a fraction of its normal value. Why?
What will be an ideal response?
A new loan results in an increase in the customer's checking account and the bank's demand deposits
a. true b. false