In the context of insurance, everyone typically has to pay a higher premium because of:
A. risk pooling.
B. diversification.
C. risk aversion.
D. adverse selection.
D. adverse selection.
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Expansionary monetary policy is likely to lead to a depreciation of the nation's currency
Indicate whether the statement is true or false
Which of the following istrueconcerning the indifference map?
a. Each consumer has a map of indifference curves. b. Consumers always prefer curves farther from the origin. c. Each indifference curve in the map represents a different level of total utility. d. All of the above are true. e. None of the above is true.
Former Fed Chairman Alan Greenspan has argued that low ___________ interest rates, not ______________ interest rates, were the cause of the housing boom in the late 1990s and early 2000s. He also argued that the Fed has more control over _______________ rates than over ____________ rates
A) long-term; short-term B) long-term; long-term C) short-term; short-term D) short-term; long-term
Diversification puts "the law of large numbers" to work for you because it
What will be an ideal response?