Designing efficient contracts are costly when
A. there is an agency relationship.
B. there is complete information.
C. there is asymmetric information.
D. there is perquisite involved.
Answer: C
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All of the following have enhanced the Fed's credibility in conducting monetary policy except
A) discontinuing the policy of announcing whether it considered the economy to be at greater risk of inflation or recession following each FOMC meeting. B) making the minutes of the open market committee meetings public. C) following through with changes it has announced. D) revealing the Fed's target for the federal funds rate.
The Smoot-Hawley Tariff
A) lowered U.S. tariffs by 50 percent following World War II. B) was passed by the U.S. Congress following the Civil War as a means of increasing government revenue. C) was passed by the U.S. Congress upon a recommendation made by the General Agreement on Tariffs and Trade (GATT) in 1948. D) raised average tariff rates by over 50 percent in the United States in 1930.