The government safety net creates ________ problem because risk-loving entrepreneurs might find banking an attractive industry
A) an adverse selection
B) a moral hazard
C) a lemons
D) a revenue
A
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A key to analyzing subgame perfect equilibrium strategy in sequential games is
a. predictable behavior b. an explicit order of play for at least some participants c. information sets that are known with certainty d. credible threats clearly communicated e. randomness
Appropriate fiscal policy depends on the other major tool of governmental stabilization policy:
a. trade policy. b. tax policy. c. monetary policy. d. labor market policy.
If a bank has a net worth that is negative, what do you know about the relationship between the amounts the bank has in assets and liabilities?
What will be an ideal response?
The purchase by a consumer in Brazil of a video game produced in the United States is included in U.S
A) consumption expenditures. B) investment expenditures. C) government purchases. D) net exports.