Cashing out capital gains in Virtual Currency System #3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. M2 money multiplier to remain the same.
b. M2 money supply to fall.
c. M2 money multiplier to fall.
d. Monetary base to rise.
.A
Economics
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When the Fed sells foreign assets and buy domestic assets at the same time,
A) its assets and liabilities rise by the same amount. B) its assets and liabilities fall by the same amount. C) the composition of its assets changes, but its liabilities are unaffected. D) the composition of its liabilities changes, but its assets are unaffected.
Economics
If information is asymmetric, explain why the hire contract is not efficient in production and a moral hazard exists, but the fixed fee to the principal contract is efficient and does not pose a moral hazard problem
What will be an ideal response?
Economics