An expansionary monetary policy eventually leads to a decrease in business investment spending and consumer borrowing
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Scenario 12.1. What is the probability of both Simon and Paula trying to rescue the man?
A) 9% B) 21% C) 49% D) 70%
The requirement that a minimum volume of ethanol is blended into the U.S. fuel supply is an example of a. a corrective tax
b. a corrective subsidy. c. a command-and-control policy. d. the Coase Theorem.
The current U.S. economy is based primarily on the production of
A. Services. B. Manufacturing goods. C. Agricultural goods. D. Goods for federal government use.
Why is the study of asymmetric information associated with the market for "lemons"?
A) Sellers of citrus fruit—lemons, oranges, grapefruit—know the difference between bad fruit and good fruit; buyers do not have this information. B) Because there is little advertising in the market for lemons, buyers have difficulty determining the quality of lemons before they are purchased. C) Potential buyers of used cars have difficulty separating good used cars from bad used cars; bad used cars are often referred to as "lemons." D) Most sellers of used cars have less information about their cars than the dealers who buy them; used cars are often referred to as "lemons."