A large part of the principal-agent problem stems from the desire of
A) agents to work hard.
B) agents to avoid working.
C) principals to work hard.
D) principals to avoid working.
B
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Refer to the scenario above. Which of the following problems is likely to occur in this market?
A) The fallacy of composition B) Moral hazard C) Adverse selection D) The free-rider problem
Explain how a currency drain affects the size of the money multiplier. In your explanation, suppose that a bank gains $1 million in new deposits and reserves
Further suppose that the desired reserve ratio is 10 percent and the currency drain is 50 percent.
What is securitization?
What will be an ideal response?
If the price of a good increases and the total revenue remains the same, the demand for the good is
A. elastic. B. perfectly elastic. C. inelastic. D. unit elastic.