When sellers have more information about products than buyers do, we would expect
A) sellers to get higher prices for their goods than they could otherwise.
B) buyers to pay lower prices for goods than they would otherwise.
C) high-quality goods to drive low-quality goods out of the market.
D) low-quality goods to drive high-quality goods out of the market.
D
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Explain what is meant by liquidity preference
What will be an ideal response?
Where the consumption function intersects the 45-degree line
A. saving will be zero. B. savings will be negative. C. consumption will equal only autonomous consumption. D. the average propensity to consume is 0.5.
If the U.S. government were to impose a 20% tariff on all foreign imports, this would likely lead to ____ in demand for foreign currencies, causing the dollar to ______.
A. a decrease; depreciate B. an increase; depreciate C. a decrease; appreciate D. an increase; appreciate
The above table has the demand and supply schedules for money. What is the equilibrium nominal interest rate?
A) 8 percent B) 7 percent C) 6 percent D) 5 percent E) 9 percent