In recent years, the Federal Reserve has:
A. paid closer attention to M1 than M2 in setting monetary targets.
B. relied more on changes in the discount rate than open-market operations in establishing
monetary policy.
C. has increased M2 at a fixed annual rate, regardless of the health of the economy.
D. taken an activist, pragmatic approach to monetary policy, paying close attention to interest
rates.
D. taken an activist, pragmatic approach to monetary policy, paying close attention to interest
rates.
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Why does a patent stimulate research?
A) Patents give firms time to do research. B) Patents give firms the opportunity to recover research costs and thus serve as a profit motive. C) Without patents firms would not research as much. D) They don't.
Bad risks may be the most willing to pay high interest rates and thus get loans. This describes an example of
a. symmetrical information b. adverse selection c. natural selection d. moral hazard e. the winner's curse