The problem of "asymmetric information" is that the
A) lender knows more than the borrower.
B) borrower knows more than the lender.
C) borrower and lender have different goals.
D) borrower and lender know the future much less than they do the present.
B
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Everything else held constant, if a central bank makes an unsterilized sale of foreign assets, then the domestic money supply will ________ and the domestic currency will ________
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
The slope of the aggregate supply curve becomes steeper, the faster the costs of production adjust to prices and the smaller the amount of excess capacity in the economy
a. True b. False Indicate whether the statement is true or false
The Fed
A) can examine the books of a member bank without warning. B) can examine the books of a member bank after giving advance notice. C) can examine the books of a member bank with the bank's permission. D) is never allowed to see the books of a privately owned bank.
When the minimum wage is set below the market equilibrium wage, it does not affect the market.
Answer the following statement true (T) or false (F)