In effect, banks are able to charge
A) depositors for banks' superior information about borrowers.
B) borrowers for banks' superior information about depositors.
C) the government for banks' superior information about borrowers and depositors.
D) interest rates that are in fact above those legally allowed.
A
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Suppose that the United Kingdom pegs the pound to the euro. If all other things remain unchanged, what would you expect to happen to European interest rates if all countries who use the euro decided to adopt expansionary fiscal policies?
A) They would rise. B) They would fall. C) They would not change. D) That cannot be determined using the information provided.
Suppose the University of Oklahoma increases the price of student football tickets for the 2012 season by 30 percent. If the price elasticity of demand for student tickets is 1.22, the price increase leads to
A) a 36.6 percent decrease in the quantity demanded. B) a 30 percent decrease in the quantity demanded. C) a 1.22 percent decrease in the quantity demanded. D) a 28.78 percent decrease in the quantity demanded. E) no change in the quantity demanded.