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Author Question: In an administrative command economy, a price below equilibrium a. means we can buy cheap goods ... (Read 37 times)

jc611

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on: Jun 30, 2018
In an administrative command economy, a price below equilibrium
 a. means we can buy cheap goods freely
  b. creates opportunities for corruption
  c. does not matter at all
  d. both a and b are correct
  e. none of the above

Question 2

If the credit markets were segmented:
 a. It would be relatively easy to arbitrage securities of different maturities, because discrepancies in real and nominal interest rates would be so obvious.
  b. Persistent differences between real and nominal interest rates could continue for extended periods of time.
  c. The yield curve would be upward-sloping.
  d. The yield curve would be downward sloping.
  e. Potential, arbitrageable differences between the yields on securities of different maturities could continue for extended periods of time.


stanleka1

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

.E


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