It is often reported by financial news reports that higher interest rates reduce automobile sales. If this is true, we can expect
a. fiscal policy to be more effective.
b. both fiscal and monetary policy to be more effective.
c. monetary policy to be more effective.
d. neither fiscal nor monetary policy to be more effective.
c
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Using the figure above, suppose education is provided by public colleges. At what level should tuition be set to ensure the efficient number of students?
A) $10,000 B) $5,000 C) $20,000 D) $25,000 E) $15,000
Which of the following is true with regard to the supply of money?
A) an open market sale of government securities will increase liquidity B) an open market purchase of government securities will decrease liquidity C) liquidity and the money supply are directly related D) all of the above E) none of the above
Asymmetric information exists when one participant in a market transaction has more information than the other participant
a. True b. False
The owner of Chez Zee needs to hire a new head chef and has posted an advertisement on various online job boards. The restaurant owner wants to reduce the amount of imperfect information he receives from job applicants. Which of the following would address this concern?
a. Requiring a resume and recommendations b. Requiring a detailed job and personal history c. Stipulating a trial period as a hiring condition d. Offering the job with a renewable contract