When regulators identify with the special interests of the industry they regulate, this behavior conforms with the
A) share-the-gains, share-the-pains hypothesis.
B) rate-of-return hypothesis.
C) lemon market hypothesis.
D) capture hypothesis.
Answer: D
You might also like to view...
The relationship between disposable income and consumption expenditure is
A) positive. B) U-shaped. C) negative. D) nonexistent. E) not stable because it depends on whether the economy is in equilibrium or not.
Suppose we have an economy in which G = 1100, t = 0.26, Y = 3800, and YN = 4000. At Y, the actual deficit is
A) 60. B) 200. C) 112. D) 286. E) -60.
If there is an excess supply of bonds at a given price of bonds, then
A) the interest rate will fall. B) the interest rate will rise. C) the price of bonds will fall. D) the interest rate may rise or the interest rate may fall depending upon the reasons for the excess demand for bonds.
The most important driver for the global economy is likely to be: