Which of the following could prevent the opportunistic behavior of firms?
A) efficient contracts
B) good reputation
C) revealing relevant information about firms
D) All of the above
D
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The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will appreciate when:
A. U.S. consumers increase their preference for Japanese cars. B. the Bank of Japan tightens monetary policy. C. real GDP in the U.S. increases. D. the U.S. Federal Reserve tightens monetary policy.
The function of money that enables individuals to exchange goods and services in a common unit of account is called:
A) medium of exchange. B) store of value. C) unit of account. D) measure of power.
Total utility is maximized when _____
a. the marginal utility is maximized b. the marginal utility is the same for all goods consumed c. the marginal utility per dollar expenditure is maximized d. the marginal utility per dollar expenditure is the same for all goods consumed e. any change in purchases from good A to good B reduces marginal satisfaction
Most of the U.S. national debt is owed to
a. insurance companies. b. foreign and international institutions. c. private investors. d. Federal Reserve banks and government agencies.