If depository insurance exists, bank managers may make riskier loans than they would have otherwise, which is an example of
A) adverse selection. B) regulatory lag.
C) irrational behavior. D) moral hazard.
D
Economics
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Suppose a change in the stock market makes people feel wealthier, increases consumption, and shifts the aggregate-demand curve right. The change in the stock market must have been
a) an increase in stock prices. b) a decrease in stock prices. c) the stock market has no effect on wealth and consumption. d) no change in stock prices.
Economics
Gary usually does not donate for charity. However, he donated money for an environmental awareness campaign launched by his friend. This is an example of ________
A) rationalism B) pure altruism C) impure altruism D) liberalism
Economics