During the Great Depression, as real interest rates rose, good credit risks were less likely to seek loans. This process illustrates the phenomenon of ________
A) adverse selection
B) moral hazard
C) poor monetary policy
D) debt deflation
A
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The United States has an absolute advantage in producing sugar over all of the other sugar producing countries. Does this fact mean that we should not import any sugar from the other countries?
What will be an ideal response?
Which if the following is the best example of a public good?
a. Bread. b. Fish in the ocean. c. Scrambled satellite broadcasts. d. National defense.
As a result of the Great Recession, job growth did not resume until
a. September 2008 b. March 2009 c. September 2009 d. March 2010
The accounting profit earned by a firm is smaller than its economic profit because accountants include the value of various opportunity costs of production when calculating the accounting profit
a. True b. False Indicate whether the statement is true or false