Diminishing marginal returns and diseconomies of scale are two different names for the same thing

When the credit spread rises, an effective policy response might be to ________

A) lower the real interest rate on safe assets B) prevent the real federal funds rate from falling below zero C) pursue nonconventional monetary policies to restore the functioning of financial markets D) announce swift and stern action against those responsible for the financial disruption

Harry decides to buy shares of Oscorp Inc based on the rumor that the price of the shares will rise in the future. This illustrates the theory of adaptive expectations

a. True b. False Indicate whether the statement is true or false