________ is the measure of the sensitivity of one variable to a change in another

Banks deal with problems of adverse selection by

A) charging high interest rates. B) gathering information about the default risk of borrowers. C) making only short-term loans. D) making only long-term loans.

Restrictions on imports

A) eventually reduce exports, too. B) enhance economic welfare by encouraging more exports. C) are the quickest way for a country in recession to start on a path of economic recovery. D) usually have no long-run effects on an economy.