Public Broadcasting, in its fund drives, often arranges for a corporation to match donations made by its employees. This is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good.

If two nations both peg to a center nation, and one devalues its exchange rate against the other partner (cooperatively) and to the center as a result of a demand shock, what is the effect?

A) The center nation will require that the two line up their rates. B) The devaluing nation will see an increase in demand while the other partner sees a decrease (thus sharing the impact of the demand shock). C) The devaluing nation will see a larger increase in demand while its partner will suffer more (thus favoring the devaluing nation). D) Both nations will suffer more because the center nation will match the devaluation, thus negating the effect.

State one reason why government intervention may not be a good solution to an asymmetric information problem