In an open economy under flexible exchange rates, a reduction in the interest rate will cause a reduction in which of the following?

Which of the following is TRUE regarding markets? I) Economists define a market as a geographic location where trade occurs. II) A market enables buyers and sellers to get information about each other and to buy and sell from each other

III) Markets coordinate decisions through prices. A) I only B) I and III C) II and III D) I, II and III

The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. Forty percent (40%) of all cars are lemons. Which of the following statements is true?

A) All of the cars will be sold. B) No cars will be sold. C) Only lemons will be sold. D) Ten percent of the used cars sold will be lemons.