If one economic agent possesses more information than their ...

[cabate]

If one economic agent possesses more information than their fellow transactor ________.
 
  A) economic transactions cannot occur
  B) the moral hazard problem has been eliminated
  C) the adverse section problem has been eliminated
  D) asymmetric information exists

Question 2

If the Fed decides to increase interest rates to fight off potential inflation, and their policy action kept the inflation rate stable, then other things equal, this would result in
 
  A) the IS curve shifting to the right.
  B) the IS curve shifting to the left.
  C) the MP curve shifting up.
  D) the MP curve shifting down.

[ricroger]

Answer to Question 1

D

Answer to Question 2

C

[cabate]

Thank you

[ricroger]

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