Moral hazard is the term used to describe the situation in which:
a. a consumer may buy a low-quality product.
b. consumers receive a lower price because of a mistake on the part of the clerk.
c. a consumer is being compensated for a defective product.
d. people may change their behavior after they have signed a contract or agreed to a specified behavior.
e. people want to change their behavior after they have signed a contract or agreed to a specified behavior but are unable to do so.
d
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Using the Cambridge equation, by how much does the demand for money rise at a constant real GDP of $2,000 billion when the price level rises by 10 percent from 1.00, given k = 0.25?
A) $200 billion B) $20 billion C) $550 billion D) $50 billion
American union membership as a percentage of the total nonfarm labor force reached its peak in
a. 1900 b. 1910 c. 1920 d. 1930