The amount of a tax paid by the sellers will be smaller the more ________ the demand and the more ________ the supply

A person takes out a car loan at a bank, but actually uses the money to play the lottery. This situation is an example of which problem banks face in lending?

A) adverse selection B) moral hazard C) interest rate risk D) illiquidity

Total spending will equal total output

a. after inventory adjustments b. only when total leakages are equal to total injections c. by the end of every year d. only when the sum of saving and investment equals the sum of net taxes and government expenditures e. saving is equal to net taxes