For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of moral hazard?
a. After the loan has been made, individuals become careless with their finances
b. Individuals most likely to default are the ones most likely to apply for the loan
c. Lenders performing a credit check on all potential borrowers
d. None of the above
a
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If the price level is 100 in one year and rises to 102 the next year, then the inflation rate is
A) 0.02 percent. B) 100 percent. C) 102 percent. D) 2.0 percent. E) unable to be determined without knowing potential GDP.
Low demand consumers are indifferent between second degree and first degree price discrimination.
Answer the following statement true (T) or false (F)
Other things equal, a country's long-run aggregate supply will shift to the right when the productivity of labor rises
a. True b. False Indicate whether the statement is true or false
Which one of the following would increase income inequality as measured by official Census data and the quintile distribution?
A. A doubling of Social Security retirement benefits. B. The elimination of the SNAP program. C. The elimination of the TANF program. D. Reduced divorce rates.