The difference between the interest rate on loans to households and firms and the interest rate on completely safe assets is known as ________
A) the fed funds rate
B) the discount rate
C) asymmetric information
D) the credit spread
D
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Suppose a market is currently served by an incumbent firm. If a potential entrant can enter prior to the incumbent firm announcing its output (or price), the entrant will enter the market and force the incumbent to compete.
Answer the following statement true (T) or false (F)
The main avenue by which a temporary change in government purchases in the classical model affects the labor supply is by
A) changing the population. B) affecting the value of the stock market. C) increasing business confidence. D) affecting workers' wealth.
A potential outcome
A) is the outcome for an individual under a potential treatment. B) cannot be observed because most individuals do not achieve their potential. C) is the same as a causal effect. D) is none of the above.
Which of the following is true?
A. Monopolists never lose money regardless of short-run or long-run. B. Monopolies can be overcome by market forces or by government action. C. The most efficient output is found where MC and MR cross. D. The automobile industry is an example of a monopoly.