The analysis of asymmetric information problems is called ________. A) adverse selection B) microeconomics C) cybernetics D) agency theory ANSWER D
Date: September 10th, 2020
In a large open economy, an increase in ________ leads to ________. A) desired saving; an increase in the domestic interest rate B) desired investment; an decrease in the domestic interest rate C) desired saving; an increase in desired investment D) desired saving; a decrease in actual investment E) none of the above ANSWER […]
Date: September 10th, 2020
The endogenous variable in the liquidity preference function is ________. A) demand for real money balances B) the nominal interest rate C) real income D) the price level E) none of the above ANSWER A
Date: September 10th, 2020
The property of diminishing marginal rate of substitution follows from the property that the indifference curves are A) downward sloping. B) upward sloping. C) bowed in toward the origin. D) bowed out from the origin. ANSWER C
Date: September 10th, 2020
The liquidity preference function shows that as ________. A) real income decreases, so does the demand for real money balances B) the nominal interest rate increases, so does the demand for real money balances C) real income decreases, so does the real interest rate D) all of the above E) none of the above […]
Date: September 10th, 2020
The federal government of the United States has ________. A) proven itself unable to significantly influence U.S. home ownership B) has been able to increase the volume of home ownership in the U.S. C) proven itself able to effectively control monetary policy D) has been unable to increase the volume of government spending since WWII […]
Date: September 10th, 2020
In a large open economy ________. A) the effect of shifts in saving and investment on the trade balance are in the same direction as in a closed economy B) the effect of shifts in saving and investment on net capital flows are in the same direction as in a closed economy C) the effect […]
Date: September 10th, 2020
One of the primary objections to the new classical model is that ________. A) firms could easily get information about price movements and so would not be fooled for very long B) price is negatively related to quantity demanded, but positively related to quantity supplied C) business cycles are relatively brief in duration D) it […]
Date: September 10th, 2020
According to agency theory, a financial crisis results from ________ that disrupts the flow of funds from lender-savers to borrower-spenders. A) an increase in asymmetric information B) a macroeconomic shock C) the existence of asymmetric information D) a decrease in saving ANSWER A
Date: September 10th, 2020
For the period 1947-2012 in the United States, the price level was A) acyclical. B) bicyclical. C) procyclical. D) countercyclical. ANSWER D
Date: September 10th, 2020
