The drop in unemployment from over 11 percent in 1939 to roughly 1 percent in 1944:
a. has been attributed by Keynesians as a validation of larger deficits as a solution to unemployment.
b. has been attributed by Monetarists as a validation that a large increase in the money supply would cure the depression.
c. has been acknowledged as a success in Keynesian policies, with the caveat that inflation was only averted through price controls.
d. All of the above are correct.
d. All of the above are correct.
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If the problem of asymmetric information is so serious that a lender chooses not to lend to any potential small business borrower, then the problem is
A) moral hazard. B) adverse selection. C) market failure. D) disintermediation.
The higher the rate of inflation, the lower the:
A. real interest rate can fall. B. real interest rate can fall, as long as it is positive. C. nominal interest rate can fall. D. nominal interest rate can fall, as long as it is positive.