Government-backed deposit insurance increases the ________
A) Willamette torsion effect
B) adverse selection problem
C) moral hazard problem
D) the prudential contagion problem
C
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Use the following market-for-money diagrams to answer the next question.
If the Federal Reserve increased the stock of money, the
A. S curve would shift leftward and the equilibrium interest rate would rise. B. D3 curve would shift leftward and the equilibrium interest rate would rise. C. S curve would shift rightward and the equilibrium interest rate would fall. D. D3 would shift leftward and the equilibrium interest rate would fall.
Explain how not knowing whether someone will vote naively or strategically could make vote manipulation through agenda setting more difficult
What will be an ideal response?
The definition of a price taker is:
A. having market power. B. having no control over the market price. C. being competitive. D. having government determine what you sell goods and services for.
If consumers elect to postpone consumption so they can have a more enjoyable future, the supply of loanable funds would increase and the market rate of interest would fall
a. True b. False