At what stage of the securitization process was moral hazard a major problem?
a. Securitization.
b. Rating securitized issues.
c. Insuring securitized issues
d. All of the above
.D
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A used car was recently priced at $20,000.00. Seeing the car, Bobby thought, "It's nice, but if I have to pay more than $19,500 for this car, then I would rather do without it." After negotiations, Bobby purchased the car for $19,250.00
His consumer surplus was equal to A) $19,500.00. B) $1,750.00. C) $250.00. D) $0.00.
Give an example of a monetary policy target. Explain why the Fed uses policy targets
What will be an ideal response?
Firms in a perfectly competitive market produce at minimum average cost in the short run and the long run.
Answer the following statement true (T) or false (F)
The fact that severe fluctuations in inflation and unemployment are socially undesirable helps make the case for
a. a "hands off" policy by the government. b. fixed prices and wages. c. active government stabilization policy. d. restrictions on imports from low wage countries.