Moral hazard occurs when a person's behavior changes in a way that
a. is immoral
b. is inherently dangerous
c. increases the chances of an unfavorable outcome
d. increases the likelihood of profit
e. raises the net welfare of society
C
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The internet has changed how people shop for clothes, electronics, and other goods. Because of online shopping, many retailers have closed or shut down. How has this affected goods like clothes?
A. The supply of goods like clothes will decrease. B. The demand for goods like clothes will increase. C. The supply of goods like clothes will increase. D. The demand for goods like clothes will decrease.
Inclusive property rights give an individual less options and lower incentives to avoid inefficient choices
Indicate whether the statement is true or false
An increase in the required reserve ratio ____ excess reserves and _____ the money supply.
A. increases; decreases B. decreases; increases C. decreases; decreases D. increases; increases
Given an upward sloping aggregate supply curve, which of the following changes in the aggregate demand curve is observed when the Fed reduces the money supply?
What will be an ideal response?