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Author Question: The Friedman rule works because A) it maximizes productivity. B) it eliminates over-consumption. ... (Read 46 times)

mckennatimberlake

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on: Jun 30, 2018
The Friedman rule works because
 
  A) it maximizes productivity.
  B) it eliminates over-consumption.
  C) it encourages people to hold the appropriate quantity of money.
  D) it can be implemented by the private sector.

Question 2

In the two-period model with asymmetric information, a one-unit increase in the real rate of interest on bank deposits
 
  A) causes the real loan interest rate to increase by more than one unit.
  B) causes the real loan interest rate to increase by less than one unit.
  C) cause the real loan interest rate to decrease by less than one unit.
  D) causes the real loan interest rate to decrease by more than one unit.


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makaylafy

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

C

Answer to Question 2

A


mckennatimberlake

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

Dominic

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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