When one person knows more than another, it creates a situation:
A. in which the transaction is always regretted.
B. called information asymmetry.
C. in which the transaction will not occur.
D. called information dominance.
B. called information asymmetry.
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A decrease in the discount rate
A) reduces the cost of borrowing from the Fed. B) increases the cost of reserves borrowed from the Fed. C) signals the Fed's desire to decrease the money supply. D) signals the Fed's desire to reduce lending to commercial banks.
A ________ is a transaction in which both a spot transaction and a forward transaction are agreed upon simultaneously
A) arbitrage B) call C) swap D) put
Refer to above Table 2-1. What is the level of National Income?
A) 2630 B) 2420 C) 2660 D) 2430
In the above figure, starting at E1, if there is a supply shock that is temporary, the
A. aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1. B. aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0. C. aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1. D. aggregate supply would shift to SRAS1 and then return to SRAS0.