Moral hazard occurs when one side of an economic relationship:
A. takes costly actions that the other side of the relationship cannot observe.
B. takes actions that is contrary to the religious beliefs of the other side of the economic relationship.
C. takes actions that the other side of the relationship enjoys doing.
D. takes actions that the other side of the relationship cannot force them to do.
Answer: A
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Using the Internal Rate of Return approach to investment, one would undertake an investment if the internal rate of return
A) equals zero. B) equals the interest rate. C) exceeds the interest rate. D) is less than the interest rate.
Explain what a potential money multiplier of 3 means. How can the Fed increase the potential money multiplier?
The new growth theory emphasizes the critical role of ____ in modern economic growth
a. new machinery b. new knowledge c. new natural resources d. new government programs
The achievement of full employment through time will:
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