Which of the following statements is most correct?
A. The higher the deposit insurance limit the greater the risk of moral hazard.
B. Deposit insurance limits do not impact moral hazard, they impact adverse selection.
C. Increasing the deposit insurance limits above $100,000 would increase coverage for over 50 percent of all depositors.
D. The higher the deposit insurance limit the lower the risk of moral hazard.
Answer: A
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When a perfectly competitive market is in long-run equilibrium, price is equal to marginal cost, the individual firm is operating at the minimum of its short-run and long-run average cost curves, and economic profit equals zero
Indicate whether the statement is true or false
Equilibrium price must decrease when demand
a. increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously. b. increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously. c. decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously. d. decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.
If saving supply decreases, the equilibrium real interest rate ________ and the equilibrium quantity of investment ________
A) rises; decreases B) falls; decreases C) falls; increases D) rises; increases E) does not change; does not change
It is easy to discern the difference between vigorous competition and the exercise of monopoly power
a. True b. False Indicate whether the statement is true or false