In asset markets, an asset's price is

A) set equal to the highest price a seller will accept.
B) set equal to the highest price a buyer is willing to pay.
C) set equal to the lowest price a seller is willing to accept.
D) set by the buyer willing to pay the highest price.

D

Economics

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The publisher that paid Arthur Arthur, the popular novelist, a $2 million advance on his recent novel, which sold only 42 copies, fell victim to

a. moral hazard b. an authority relation c. the winner's curse d. the principal-agent problem e. adverse selection

Economics

If the reserve requirement is 0.2 and demand deposits are $800 (assume no earlier loans), the banks can lend out

a. $800 b. $80 c. $640 d. $160 e. $960

Economics