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Unformatted text preview: 7. Commercial papers are long term debt instruments issued by large corporations (like Microsoft and General Motors). 8. Adverse Selection and Moral Hazard arise because of the one party to the transaction has less information than the other party to the transaction (i.e. because of asymmetric information). 9. The monetary aggregate M1 includes cash, demand deposits and checkable deposits. 10. The monetary aggregate M2 includes M1, savings and money market mutual funds, funds that also include corporate bonds. Econ 500 Fall 2011 Z. Janko...
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- Fall '09
- Interest Rates