Author Question: If money is superneutral, A) a one-time change in the money supply has no real impact. B) a ... (Read 73 times)

krzymel

  • Hero Member
  • *****
  • Posts: 548
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.



Jane

  • Sr. Member
  • ****
  • Posts: 309
Answer to Question 1

C

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

For a complete list of videos, visit our video library