The lemons problem is that when there are hidden characteristics known only to the seller of a used car,
a. the ratio of lemons to high-quality cars is likely to be high
b. the ratio of lemons to high-quality cars is likely to be low
c. good used cars will sell for more than their market value
d. no lemons will be offered on the market
e. the price of lemons will be below their market value
A
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The open-economy IS curve slopes down because any change in the foreign or home interest rate will inversely affect demand, along with a secondary effect from a change in:
A) the rate of depreciation of assets. B) the exchange rate and the trade balance. C) the real interest rate. D) the growth rate of money.
As you move along an indifference curve, your total utility increases or decreases depending on whether it's an upward or downward movement
a. True b. False Indicate whether the statement is true or false