When sellers have more information about the quality of a good than buyers do, a relatively large share of the goods in the market will be low-quality goods. This is the ________ problem.

Crowding out due to government borrowing occurs when

A) lower interest rates increase private sector investments B) lower interest rates decrease private sector investment C) higher interest rates decrease private sector investment D) a smaller money supply increase private sector investment E) a smaller money supply decrease private sector investment

If the velocity of the M1 money supply is 4 and nominal GDP is $200 billion, the stock of money in circulation must be:

a. $25 billion. b. $50 billion. c. $100 billion. d. $800 billion.