Evidence suggests that credit-rating agencies ________ exploited conflicts of interest because ________
A) have not; it would cause their ratings to lose credibility and thus have a lower value in the marketplace
B) have not; they would have an increase in profits in the long-run
C) have; it would cause their ratings to lose credibility and thus have a lower value in the marketplace
D) have; they would have an increase in profits in the long-run
A
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Suppose homebuyers believe that prices will fall over the next six months to a year. This would tend to
A) increase their demand for homes today. B) decrease their demand for homes six months from today. C) decrease their demand for homes today. D) have no effect on their demand today or six months from today.
Refer to the payoff matrix below. If Camp R Us announces that it will offer special financing, Happy Campers ________ believe Camp R Us as their incentives ________ align.
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) should; do not B) should; do
C) should not; do D) should not; do not
Which of the following policies is supported by the idea that producers and workers will demand higher prices and wages when they see the money supply expanding?
A. Discretionary policy B. Fixed rules C. The Fed's eclecticism D. Fiscal policy
The two sector flow model represents a good way to see how GDP is counted. What are the two methods or approaches to counting GDP?
What will be an ideal response?