Because local banks earn fees for each loan, their role to:
A. properly assess the risk of each borrower is misaligned with their incentive.
B. create not many mortgages perfectly aligns with their incentives.
C. provide mortgage loans only to those with low credit scores is misaligned with their incentive.
D. properly assess the risk of each borrower is perfectly aligned with their incentive.
A. properly assess the risk of each borrower is misaligned with their incentive.
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In understanding and analyzing "market demand," we focus on how much all buyers are
A. willing and wanting to buy at different prices. B. willing and able to buy with their given income. C. willing and able to buy at different prices. D. actually buying now and in the recent past at various prices.
The owner of a garage makes large contributions to a politician who is seeking the office of state governor. If his candidate wins, he will get the contract, which now resides with a competitor, to repair State Police vehicles. This is an example of
A. moral hazard. B. externality. C. rent seeking. D. investment.
Consumers most likely decide on their current consumption spending by looking at their short-run income prospects
a. True b. False Indicate whether the statement is true or false
Assuming no government or foreign sector, if the MPC is 0.5, the multiplier is
A. 0.2. B. 0.5. C. 2. D. 5.