An open-market sale of Treasury bills by the Fed not only reduces the money supply but also
A. Lowers T-bill prices and raises interest rates.
B. Drives up T-bill prices and pushes down interest rates.
C. Lowers T-bill prices and pushes down interest rates
D. None of these.
Answer: A
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The tendency for people to enter into agreements in which they can use their private information to their own advantage and to the disadvantage of the less informed party is known as
A) adverse selection B) moral hazard. C) the market for oranges. D) a signal.
The assumption of asymmetric information means that
A) borrowers and lenders have the same information. B) borrowers and lenders have perfect information. C) borrowers know more than lenders. D) lenders know more than borrowers.
A constitutional amendment requiring an annually balanced budget would help stabilize the economy
a. True b. False Indicate whether the statement is true or false
Which is not an example of pollution?
A. Automobile exhaust B. Aircraft jet engine noise C. Municipal treatment plant wastes D. Zero-emission electric cars