The interest rate on loans made by banks in the market in which they lend and borrow reserves from each other for very short periods of time is known as the

If the economy is in short run equilibrium then

A) real GDP equals potential GDP. B) nominal GDP equals potential GDP. C) real GDP cannot be equal to potential GDP. D) real GDP can be greater than, less than, or equal to potential GDP.

Less skillful drivers are more likely to buy auto insurance with lower deductibles. Economists use this as an example of:

A. information optimization. B. adverse selection. C. asymmetric selection. D. moral hazard.