When the inflation rate of a country is high over a lengthy time period,
a. the year-to-year variability in the rate of inflation is generally small.
b. the year-to-year variability in the rate of inflation is generally large.
c. decision makers will be able to forecast future rates of inflation accurately.
d. there is no reason to believe that the inflation will exert harmful side effects on real output and the prosperity of the country.
B
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Many professional sports athletes have incentive clauses in their contracts. These indicate that
A) the team owner has asymmetric information. B) the athlete might engage in moral hazard, which the team owner wishes to avoid. C) the athlete might engage in adverse selection, which the team owner wishes to avoid. D) the athlete has stronger negotiators.