The result of the Cutler-Reber study of different insurance plans was
A) increased moral hazard among the insured.
B) increased adverse selection among the insured.
C) asymmetric information was irrelevant among the insured.
D) competition among the insured resulted in higher prices for insurance.
B
Economics
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In the two-period model with asymmetric information, the presence of bad borrowers who always default
A) makes good borrowers better off. B) matters only for the loan interest rate faced by bad borrowers. C) affects the equilibrium profits of banks. D) affects good borrowers adversely.
Economics
A depreciation of the U.S. dollar has the same effect on aggregate supply as an increase in foreign prices
a. True b. False Indicate whether the statement is true or false
Economics