Which of the following may NOT serve as a possible chain reaction for either fiscal or monetary policy?

A) G? ? Y? ? C? ? Y? ? C?....
B) T? ? Y? ? C? ? Y? ? C?....
C) M? ? i? ? I? ? Y? ? C?....
D) M? ? i? ? I? ? Y? ? C?....
E) M? ? i? ? I? ? Y? ? C?....

C

Economics

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Federal Reserve liabilities and capital accounts are equal to

A) Federal Reserve assets. B) gold certificates + Federal Reserve notes. C) Federal Reserve notes outstanding. D) bank reserves + government securities.

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In the presence of asymmetric information,

A) all contracts are efficient. B) efficiency in risk bearing cannot be achieved. C) a trade-off exists between risk-bearing efficiency and production efficiency. D) no contracting will take place.

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