The recession of 2008-2009 was associated with a fall in housing prices which shifted aggregate demand to the left

If the U.S. interest rate is 5% and the interest rate in Germany is 2%, and the euro is expected to appreciate by 2% over the next year, then investors would:

a. sell dollars in the spot market. b. buy euros. c. seek to invest in the United States. d. seek to invest in Germany.

Adverse selection

a. occurs when the overall quality of choices facing a consumer is very low. b. is a greater problem for employees than employers. c. occurs more frequently in the market for new cars than used cars. d. is not easily remedied by free markets.