Which of the following bank-related policies of the Fed fosters huge moral hazard problems:
A. Printing of paper currency for banks to distribute
B. Too-big-to-fail policy
C. Check-clearing and deposit transfers
D. Providing banking services to governments
B. Too-big-to-fail policy
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In a perfectly competitive industry, the firm's marginal revenue curve is
A) downward sloping. B) upward sloping. C) vertical. D) horizontal.
If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment
a. True b. False Indicate whether the statement is true or false
In 1980, the combination of inflation and unemployment the U.S. was experiencing
a. resulted from a leftward shift of the short-run Phillips curve. b. was consistent with feasible inflation-unemployment combinations provided by the Phillips curve of the 1960s. c. followed two supply shocks that were triggered by the Organization of Petroleum Exporting Countries. d. All of the above are correct.
An analysis approach that considers the relationship of a proposed policy to social objectives is called ...
a. Contingent valuation b. Cost-effectiveness analysis c. Hedonic pricing d. Positional analysis e. Risk aversion