In a market with asymmetric information, a good is said to have hidden characteristics if:
A) the consumption of the good imposes an additional cost on the society.
B) the production of the good generates additional benefits to the society.
C) the seller offers secret discounts to some buyers.
D) the buyer or the seller observes something about the good that the other does not.
D
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If the Fed reduces the required reserve ratio, how will this affect excess reserves and the money supply?
a. Both will increase. b. Excess reserves increase and the money supply decreases. c. Both will decrease. d. Excess reserves decrease and the money supply increases.
The theory of consumer choice is representative of how consumers make decisions but is not intended to be a literal account of the process
a. True b. False Indicate whether the statement is true or false