Information asymmetry is a problem when:
A. a market is highly inefficient.
B. a market is highly efficient.
C. a buyer and seller have aligned incentives.
D. a buyer and seller have opposing incentives.
Answer: D
Economics
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________ occurs when the price level of goods and services increases over several months.
A) Monetarism B) A budget deficit C) An open-market operation D) Inflation E) A recession
Economics
Suppose you have $400 and the inflation rate is 5 percent. In order to earn a real return of $16 on your investment, the nominal interest rate needs to be near
A) 0 percent. B) 4 percent. C) 6 percent. D) 9 percent.
Economics