Nearly every society desires to achieve the macroeconomic goals of high employment, a stable price level, and high economic growth

The U.S. central bank is the government institution that:

A) monitors financial institutions, controls the money supply, and invests in foreign assets. B) monitors financial institutions, controls the money supply, and sets certain key interest rates. C) monitors financial institutions, controls the money supply, sets certain key interest rates, and decides on political targets. D) controls the money supply and invests in foreign assets.

The most direct and important consequence of an increase in asymmetric information problems is ________

A) a decrease in the probability of loan repayment B) inability to assess the probability of loan repayment C) unwillingness of borrowers to accept the market rate of interest D) inability of creditors to acquire enough funds to meet borrowers' demand