In the two-period model with asymmetric information, a one-unit increase in the real rate of interest on bank deposits
A) causes the real loan interest rate to increase by more than one unit.
B) causes the real loan interest rate to increase by less than one unit.
C) cause the real loan interest rate to decrease by less than one unit.
D) causes the real loan interest rate to decrease by more than one unit.
A
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The long-run aggregate supply curve shows the relationship between the ________ and ________
A) price level; quantity of real GDP supplied B) real interest rate; quantity of real GDP supplied C) inflation rate; quantity of real GDP demanded D) nominal interest rate; quantity of real GDP supplied
Although the necessary role of government in the economy is highly debated, many people agree that it should
A. Provide a legal framework. B. Protect consumers and labor. C. Protect the environment. D. All of the choices are correct.