In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the ________ for reserves and causes the federal funds interest rate to

The principal-agent problem suggests that

A) principals and agents always have the same goals. B) principals and agents will never have the same goals. C) principals and agents are more likely to have the same goals if the principal gives the agent flexibility to make his own decisions. D) principals and agents are more likely to have the same goals if the agent's pay is tied to satisfying the principal's goals.

Suppose that young people often borrow and then repay the loans when they are older. These actions relate to which problem in measuring inequality?

a. in-kind transfers b. the economic life cycle c. a negative income tax d. economic mobility