Suppose a patent applicant approaches an insurance company and seeks to purchase an insurance policy that her patent will not net $1m in the next three years. The insurance company
A) will sell her an insurance policy because the proposal entails uncertainty not risk.
B) will sell her an insurance policy because the proposal entails risk not uncertainty.
C) will not sell her an insurance policy because the proposal entails uncertainty not risk.
D) will not sell her an insurance policy because the proposal entails risk not uncertainty.
C
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The Fed acts as lender of last resort:
A. when deposit insurance isn't enough or when an institution isn't covered by deposit insurance. B. only when an institution is not covered by deposit insurance but deposit insurance would have been enough. C. for any institution, household, or business, that faces a solvency crisis. D. only when an institution is covered by deposit insurance but deposit insurance isn't enough.
In 2008, the Bank of England increased the country's money supply and lowered its interest rate. This policy was designed to
A) encourage people to buy more goods and services. B) shift the aggregate demand curve rightward. C) cause a movement up along the aggregate demand curve. D) Both A and B are correct.