Spending on consumer durables decreases as the interest rate increases.

Adverse selection is, in general, the asymmetric information problem that occurs

A) after a transaction is consummated. B) due to a size difference in the parties to a transaction. C) with securitization. D) before a transaction is consummated.

Computer processors and memory costs have decreased dramatically in the past 25 years. As a result, in the computer market, we have seen

A. an increase in demand. B. an increase in supply. C. a decrease in demand. D. a decrease in supply.