Explain the two models/theories of discrimination
What will be an ideal response?
The taste-for-discrimination model views discrimination resulting from preferences or tastes. This theory explores the willingness-to-pay that people pay to avoid the no preferred group. The size of the payment depends on the degree of prejudice.
The statistical discrimination judges individuals based on their average characteristics rather than their own merit. The differences among characteristics are based on factual evidence indicating one group to be more likely to complete an action than their counterparts.
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In which of the following categories would an agreement to trade currencies in pre-set amounts at a certain date in the future be included?
a. an option b. a futures contract c. a forward contract d. a swap
When money demand decreases, the Fed can choose between:
a. increasing interest rates or increasing the supply of money. b. increasing interest rates or decreasing the supply of money. c. decreasing interest rates or increasing the supply of money. d. decreasing interest rates or decreasing the supply of money.