A) I = Y + C + G.
B) I = Y - C - G.
C) I = Y - C + G.
D) I = Y + C - G.
The Road Runner Club contributes money to Senator Sly's reelection campaign fund, and Senator Sly helps pass legislation to add more jogging paths across the state. From this we can definitively conclude:
A. that political corruption has occurred.
B. that logrolling has occurred.
C. that a principal-agent problem has occurred.
D. nothing; the Road Runner Club may have donated to Senator Sly because he already
supported the jogging paths.
Answer: D
Economics