In a market with asymmetric information, ________
A) buyers tend to forget relevant information about the good being traded
B) buyers set the price of the good being traded
C) buyers and sellers have different information about the good being traded
D) buyers have very low bargaining power
C
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The relationship between the nominal interest rate, the real interest rate, and the inflation rate is that the
A) real interest rate is equal to the nominal interest rate plus the inflation rate. B) nominal interest rate is equal to the real interest rate plus the inflation rate. C) real interest rate is equal to the nominal interest rate multiplied by the inflation rate. D) nominal interest rate is equal to the real interest rate minus the inflation rate. E) nominal interest rate is equal to the real interest rate divided by the inflation rate.
Which of the following was not a cause of the Savings and Loan crisis of the 1980s?
(A) The gold standard (B) High interest rates (C) The deregulation of the industry (D) Bad loans