The behavior of many savings-and-loans in the 1980s appears to be evidence __________ the existence of __________ problem in deposit insurance
A) supporting; a moral hazard
B) supporting; an adverse selection
C) against; a moral hazard
D) against; an adverse selection
A
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In the short run
a. firms can enter the industry but no firm can exit. b. firms can exit the industry but no firm can enter. c. firms can enter and exit the industry. d. no firm can enter or exit the industry.
Which of the following situations is least likely to involve strategic interaction?
A) two countries deciding whether to impose trade restrictions on each other B) competing convenience stores deciding how much to charge for coffee C) two customers deciding which toaster to buy from Target D) a state legislature deciding whether to legalize casino gambling
The opportunity cost of a given investment is the potential earnings forfeited by tying up money in the investment.
Answer the following statement true (T) or false (F)
If government spending increased by $50 billion and the MPC within the economy was 0.8, what would be the total impact on real GDP?
a. $62.5 billion decrease b. $62.5 billion increase c. $250 billion decrease d. $250 billion increase