One outcome of the creation of the Federal Deposit Insurance Corporation was the reduction of moral hazard problems

The following interactions between binary and continuous variables are possible, with the exception of

A) Yi = ?0 + ?1Xi + ?2Di + ?3(Xi × Di) + ui. B) Yi = ?0 + ?1Xi + ?2(Xi × Di) + ui. C) Yi = (?0 + Di) + ?1Xi + ui. D) Yi = ?0 + ?1Xi + ?2Di + ui.

Refer to the figure below. The dominant strategy for Row Resorts is to ________, and the dominant strategy for Column Cruises is to ________.

A. keep rates high; offer reduced rates B. offer reduced rates; keep rates high C. offer reduced rates; offer reduced rates D. keep rates high; keep rates high