The bank lending channel
A) emphasizes the role of interest rates in the money supply process.
B) emphasizes the importance of borrowers' net worth to the decision of lenders to grant loans.
C) emphasizes the behavior of bank-dependent borrowers.
D) is another name for the interest rate channel.
C
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Liens __________ the moral hazard problem since the borrower is then __________ to sell the affected assets at its discretion
A) worsen; able B) worsen; unable C) ease; able D) ease; unable
One of the most serious weaknesses in the Medicare system is that
a. patients are not able to choose their own physicians. b. the definition of an episode of illness is too restrictive. c. it provides poor insurance coverage for unusually long hospital stays. d. patients must pay a deductible every time they enter the hospital. e. Part B is voluntary.
Provide the formula for the expenditure approach to GDP accounting and include an example of each category of spending
Economics is the study of how:
a. humans make decisions in the face of scarcity. b. resources are used to meet human needs. c. humans make decisions when there is an abundance of goods. d. human needs translate to business transactions.