Movements of ________ interest rates indicate that, contrary to the early Keynesians' beliefs, monetary policy was ________ during the Great Depression

If the Fed engages in an open market sale of U.S. government securities, what is the likely impact of this monetary policy move?

a. The supply of money and the interest rate will both increase. b. The supply of money will increase but the interest rate will decrease. c. The supply of money will decrease but the interest rate will increase. d. The supply of money and the interest rate will both decrease.

Answer the following statement(s) true (T) or false (F)

1. A sandwich is an example of a club good. 2. Asymmetric information means both parties in a transaction share the same knowledge. 3. Used car sellers are at an advantage over buyers. 4. In adverse selection, one party takes advantage of knowing more than the other. 5. When one party in a sale is dishonest with the other, it is called moral hazard.