An international lender of last resort creates a serious moral hazard problem because ________ and other ________ of banking institutions expect that they will be protected if a crisis occurs

A) depositors; debtors
B) depositors; creditors
C) borrowers; debtors
D) borrowers; creditors


B

Economics

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An increase in the nominal interest rate, all else held constant, will always cause which of the following?

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