The moral hazard problem caused by government safety nets:
A. only exists for banks with high leverage ratios.
B. is pretty constant across banks of all sizes.
C. is greater for larger banks.
D. is greater for smaller banks.
Answer: C
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The above figure shows the market for finish carpenters in Bozeman. There is a minimum wage set at $18
Compared to the initial equilibrium without the minimum wage, once the minimum wage is in place, and after taking account of job search, the total workers' surplus ________ and the total firms' surplus ________. A) decreases; increases B) increases; increases C) increases; decreases D) does not change; increases E) decreases; decreases
The amount of a good that must be given up to produce another good is the concept of:
a. scarcity. b. specialization. c. trade. d. efficiency. e. opportunity cost.
When governments choose to favor some industries over others, they undertake:
A. corporate growth policy. B. corporate pricing policy. C. industrial policy. D. industrial espionage.
Assume the expectations hypothesis regarding the term structure of interest rates is correct. If the current one-year interest rate is 3% and the one-year-ahead expected one-year interest rate is 5%, then the current two-year interest rate should be:
A. 3%. B. 5%. C. 8%. D. 4%.