One reason that consumers and businesses might not act rationally is
A) they may not realize their actions are inconsistent with their goals.
B) they do not always value fairness when they make choices.
C) it is difficult to obtain enough information about the elasticities of demand and supply.
D) consumer tastes change constantly.
A
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Alt-A mortgages are
A) mortgages which are bundled together by financial institutions and sold to investors. B) mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgages. C) mortgages issued to borrowers with flawed credit histories. D) government-backed mortgages issued by Fannie Mae and Freddie Mac.
Starting from equilibrium in the money market, suppose the money supply increases. Other things being equal, this will cause an excess demand for money, leading people to sell bonds
a. True b. False Indicate whether the statement is true or false