This topic contains a solution. Click here to go to the answer

Author Question: According to liquidity preference theory, as real income increases, so does ________. A) the ... (Read 78 times)

amal

  • Hero Member
  • *****
  • Posts: 572
According to liquidity preference theory, as real income increases, so does ________.
 
  A) the supply of real money balances
  B) the demand for real money balances
  C) the real interest rate
  D) all of the above
  E) none of the above

Question 2

The risk that a borrower has a greater understanding about their potential future behavior than a potential lender is known as ________.
 
  A) the problem of adverse selection
  B) the problem of moral hazard
  C) ornamental torsion
  D) the asymmetric innovation problem



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

sabina576

  • Sr. Member
  • ****
  • Posts: 356
Answer to Question 1

B

Answer to Question 2

B




amal

  • Member
  • Posts: 572
Reply 2 on: Jun 30, 2018
:D TYSM


AngeliqueG

  • Member
  • Posts: 343
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

For a complete list of videos, visit our video library