An important type of information asymmetry is:
A. information withholding.
B. advantage imbalance.
C. moral hazard.
D. ethical constraint.
C. moral hazard.
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Let M = money supply; P = price level; V = velocity; Y = real GDP. The equation of exchange is given by
A) M x V=nominalGDP. B) M x Y=P x V. C) M x P=V x Y. D) M x V=(1/V)P x Y.
Which of the following is an accurate statement of the difference between the individual demand curve and the individual supply curve?
a. The demand curve slopes upward from left to right; the supply curve slope downward from left to right.
b. The demand curve slopes downward from left to right; the supply curve slopes upward from left to right.
c. The demand curve can be shifted by technology variables; the supply curve can be shifted by income variables.
d. The demand curve can be shifted by price variables; the supply curve can be shifted by taste variables.
Entrepreneurial ability is defined as the ability to ______.
a. invent economic goods that will change society b. inspire others to reach their professional potential c. negotiate the lowest prices for scarce resources d. develop new products or production processes
What does it mean when the Federal Reserve is referred to as a lender of last resort?
What will be an ideal response?