The U.S. government establishing a policy that it will bail out troubled financial institutions and a resulting increase in the number of bank failures is an example of:
a. the moral hazard problem

In the monetary intertemporal model, the long-run effects of an increase in the level of money include

A) an increase in employment. B) lower output. C) higher real wages. D) higher nominal wages.

Ceteris paribus, economic growth involves an:

a) Increase in imports. b) Expansion of production possibilities. c) Increase in GDP due to inflation. d) Increase in GDP due to inflation.