A person who starts practicing poisonous snake charming after signing a contract with a health insurance company is an example of
A) moral hazard.
B) adverse selection.
C) signaling.
D) screening.
A
You might also like to view...
What are four functions of financial instruments?
What will be an ideal response?
__________ are issued with an original maturity of between one and ten years
A) Treasury bills B) Treasury notes C) Treasury bonds D) None of the above.
A "secured" loan is one
A) with no stated collateral. B) that is pending approval by a bank loan committee. C) which has collateral. D) in which the borrower is delinquent in loan payments but has not formally defaulted on.
In the New Keynesian model, if there is a decrease in anticipated future total factor productivity, then
A) there should be no change in monetary or fiscal policy. B) the central bank's interest rate target should be increased. C) government spending should fall, and the central bank's interest rate target should rise. D) government spending should increase.