ECS3701
Assignment 1
Semester 1 2024.Question 15
Correct
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1.00
Question 16
Correct
Mark 1.00 out of
1.00
Question 17
Correct
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1.00
Question 18
Correct
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Which of the functions of money distinguishes it from other assets?
a. Medi...
Started on Monday, 15 August 2022, 9:34 PM
State Finished
Completed on Monday, 15 August 2022, 10:50 PM
Time taken 1 hour 15 mins
Marks 16.00/20.00
Grade 80.00 out of 100.00
Question 1
Incorrect
Everything else held constant, a decrease in interest rates will cause spending on housing to ...
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1.00
a. rise.
b. either rise or fall.
c. fall.
d. remain unchanged.
The correct answer is: fall.
Question 2
Correct
The problem created by asymmetric information before the transaction occurs is called __________ , while the problem created after the transaction occurs is called ____
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a. symmetric information; free-riding
b. free-riding; costly state verification
c. adverse selection; moral hazard
d. moral hazard; adverse selection
The correct answer is: adverse selection; moral hazard
Question 3
Correct
Lower government deficits decrease the supply of bonds, and
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a. the supply curve of assets shifts to the left.
b. the demand curve for assets shifts to the right.
c. the supply curve for bonds shifts to the left.
d. the demand curve for bonds shifts to the right.
The correct answer is: the supply curve for bonds shifts to the left.
Question 4
Correct
Everything else held constant, an increase in interest rates on student loans will
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a. increase costs for students with no loans.
b. increase the cost of a university education.
c. reduce the cost of a university education.
d. have no effect on educational costs.
The correct answer is: increase the cost of a university education.
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