Tastes for perfect complements are both homothetic and quasilinear.
Answer the following statement true (T) or false (F)
False
Rationale: They are not quasilinear.
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Generally, when there is asymmetric information
A) a lender will only lend to the government. B) a lender will only lend to well-known borrowers. C) practical solutions are devised to allow lending to take place. D) a lender will cease all lending activities.
If there is a recession, the Fed would most likely encourage banks to provide loans by:
a. buying government securities. b. raising the discount rate. c. selling government securities. d. raising the federal funds rate.
The natural rate of unemployment:
A. occurs at the economy's potential level of output. B. is zero. C. will cause a steady rise in the price level. D. All of these statements are true.
Refer to the given figure where the nominal interest rate equals 6 percent and the money supply equals 600.
If the Federal Reserve wants to set the nominal interest rate at 10 percent, it must conduct open market ________ to set the money supply at ________.
A. purchases; 800 B. purchases; 200 C. sales; 800 D. sales; 200