The adverse selection problem is least likely in which of the following occupations?
a. lawyer
b. barber
c. college professor
d. marketing analyst
e. manager
B
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The M2 money multiplier is
A) negatively related to high-powered money. B) positively related to the time deposit ratio. C) positively related to the required reserve ratio. D) positively related to the excess reserves ratio.
Explain why a risk averse individual will purchase full insure if a policy is actuarially fair, but only partially insure or not insure at all, if it is not. Use graphs to support your answer.
What will be an ideal response?
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real exchange rate and monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium. Assume the nominal exchange rate is stated
as: (Foreign currency/ Domestic currency). a. The real exchange rate rises and monetary base rises. b. The real exchange rate rises and monetary base falls. c. The real exchange rate and monetary base fall. d. The real exchange rate and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
In the United States' economy
A. there is no need to economize. B. we rarely have to economize. C. only the rich have to economize. D. nearly everyone has to economize.