The tyranny of collateral ________
A) suggests that government tax rates are too high in the United States
B) gives rise to the twin problems of moral hazard and adverse selection
C) implies that when a poor person has a good idea they find it difficult to acquire financing
D) attributes moral hazard to excessive government regulation
C
You might also like to view...
Refer to the figure below. In this game, how many dominant strategies does Player A have?
A. 0 B. 4 C. 2 D. 1
A curve that depicts the relationship between price and quantity demanded is the:
a. supply curve. b. supply schedule. c. demand curve. d. equilibrium price.
If the Federal Reserve is engaging in open market operations designed to expand the money supply, it is probably
a. selling government securities to banks. b. selling government securities to the public. c. buying government securities from the public. d. encouraging banks to exchange their Fed deposits for currency.
A country which has a higher ratio of capital to other factors of production than does the rest of the world is
A. relatively capital-scarce. B. said to have a low capital-output ratio. C. operating at a point inside its production-possibility curve. D. relatively capital-abundant.