Information asymmetry is a problem when:
A. a buyer and seller have aligned incentives.
B. a buyer and seller have opposing incentives.
C. a market is highly efficient.
D. a market is highly inefficient.
B. a buyer and seller have opposing incentives.
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If the interest rate is 4 percent, the present value of $10,000 to be received one year from today is about
A) $9,246. B) $9,615. C) $10,816. D) $10,400.
If the GDP deflator is less than 100, which will be higher: nominal GDP or real GDP? Why?
What will be an ideal response?
The key objective of purchases by the Federal Reserve of over $1 trillion worth of debt issued by private firms was ________
A) to avoid the bankruptcy of the issuing firms B) to manage expectations C) to prevent such firms from being acquired by foreign companies D) to stimulate spending by firms and households
The theory of comparative advantage suggests that a (an):
a. country that is not competitive should import everything. b. country specialize in producing goods or services for which it has a lower opportunity cost. c. None of the answers are correct. d. industrialized country should not import.