A problem with the too-big-to-fail policy is that it ________ the incentives for ________ by big banks
A) increases; moral hazard
B) decreases; moral hazard
C) decreases; adverse selection
D) increases; adverse selection
A
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Goods in the CPI inflation are weighted by
a. the price of each good. b. the share of each good in GDP. c. the share of each good in the budget of an average household. d. the share of each good in total consumption.
The three curves in the above figure are
A) (1 ) the long-run aggregate supply curve, (2 ) the aggregate demand curve, and (3 ) the short-run aggregate supply curve. B) (1 ) the long-run aggregate supply curve, (2 ) the short-run aggregate supply curve, and (3 ) the aggregate demand curve. C) (1 ) the short-run aggregate supply curve, (2 ) the aggregate demand curve, and (3 ) the long-run aggregate supply curve. D) (1 ) the aggregate supply curve, (2 ) the short-run aggregate demand curve, and (3 ) the long-run aggregate demand curve.