If money is superneutral,
A) a one-time change in the money supply has no real impact.
B) a one-time change in the money supply has a real impact.
C) a change in the money growth rate has no real impact.
D) a change in the money growth rate has a real impact.
Question 2
In the two-period model with asymmetric information, the presence of bad borrowers who always default
A) makes good borrowers better off.
B) matters only for the loan interest rate faced by bad borrowers.
C) affects the equilibrium profits of banks.
D) affects good borrowers adversely.
Two modes of evolutionary change.
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Learn Canadian money grade 1