Asymmetric information in financial markets is a potential problem usually resulting from:
A. lenders having more information than borrowers.
B. the fact that people are basically dishonest.
C. the uncertainty about Federal Reserve monetary policy.
D. borrowers having more information than the lenders.
Answer: D
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Refer to the figure above. The region PCCAF shows the ________ after the imposition of the price ceiling
A) government revenue B) consumer surplus C) producer surplus D) deadweight loss
During the bank panics of the Great Depression the currency ratio
A) increased sharply. B) decreased sharply. C) increased slightly. D) decreased slightly.
The multiplier effect suggests that:
A. spending $1 increases GDP by more than $1. B. spending $1 increases GDP by less than $1. C. saving $1 increases GDP by more than $1. D. spending $1 decreases GDP by more than $1.
The purchasing power of one dollar is equal to _____
a. real GDP divided by nominal GDP b. nominal GDP divided by real GDP c. 1 minus the average price level d. the reciprocal of the average price level e. the implicit GDP deflator divided by the CPI