The putting up of outside collateral is
A) one form of the moral hazard problem.
B) one form of the adverse selection problem.
C) a signal of a high-quality borrower.
D) a signal of a low-quality borrower.
C
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Write out the expression for the Taylor rule. Use the Taylor rule to explain how a decline in real GDP below potential GDP will affect the Federal Reserve's target for the federal funds rate
What will be an ideal response?
A major distinction to be made is that deficits count government spending shortfalls ________, and public debt counts ________.
A. as a percentage of GDP; in nominal terms B. from all years; the total from a single year C. in a year; the total amount owed from all years D. in real terms; in nominal terms
Managed mutual funds perform better on average than index funds because stock prices are usually a good predictor of a company's true value
a. True b. False Indicate whether the statement is true or false
A scientist who is studying earthquakes includes the impact of wind when performing some tests of damages to structures. This is an example of
A) failing to understand how to do scientific methodology. B) irrational behavior in noneconomic situations. C) accounting for every possible phenomena that may effect the problem under examination. D) failing to hold all other things constant.