Asymmetric information is:
A) information revealed by economic agents turns out to be wrong.
B) inflation forecasts are systematically to high or too low.
C) some economic agents have more information than others.
D) the government knows less about the economy than households and firms.
C
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What is NOT true about rational choice?
A) It is the same for all individuals. B) It can result in different decisions for different individuals. C) It involves comparing costs and benefits. D) It might turn out not to have been the best choice after the event. E) It is a choice that uses the available resources to best achieve the objective of the person making the choice.
Central banks can increase the money supply by:
a. Increasing the discount rate. b. Selling government securities. c. Buying foreign exchange. d. Raising margin requirements. e. All of the above.