Savers have less incentive to care what their bank is doing with their money because their deposits are federally insured. This is a problem of

a. nominal interest
b. adverse selection
c. moral hazard
d. the winner's curse
e. a positive externality


C

Economics

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When the misery index is used to judge macroeconomic conditions, reducing inflation by one percentage point

A) has no effect at all on how we judge the economy's performance. B) is of less benefit to the economy than reducing the unemployment rate by one percentage point. C) gives the same benefit to the economy as reducing the unemployment rate by one percentage point. D) is of greater benefit to the economy than reducing the unemployment rate by one percentage point.

Economics

To determine whether or not a pair of goods are complements, economists are interested in the cross price elasticity of demand between the two goods

a. True b. False Indicate whether the statement is true or false

Economics

A decrease in income will lead to an increase in the demand for an inferior good.

Answer the following statement true (T) or false (F)

Economics

Why did the Full Employment and Balanced Growth Act establish 3 percent inflation as the benchmark rather than zero inflation?

What will be an ideal response?

Economics