Financial intermediaries are able to exploit economies of scale since
A) the equipment or expertise necessary for one transaction can be applied to other transactions.
B) they have special licenses needed to perform financial transactions.
C) financial markets fail to do so.
D) they can reduce transactions cost, but not information costs.
A
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Unanticipated deflation can create unemployment if
A) nominal wages are sticky, causing real wages to rise over time. B) nominal wages are flexible, causing people's real incomes to decline. C) banks refuse to make loans at low nominal interest rates. D) nominal interest rates remain positive.
Which of the following statements is an example of agenda control?
a. A governor vetoes a concealed carry law. b. A state legislature puts on the ballot a $500 million high-tech infrastructure initiative. c. A state education department implants a federal education law. d. A private citizen sues to prevent her home being taken through eminent domain.