There are several reasons why incomes are unequal, including differences in luck, experience, and schooling.

If the multiplier is 4, the marginal propensity to consume (MPC) must be

A) 0.5. B) 0.25. C) 0.75. D) 1.

Bad risks may be the most willing to pay high interest rates and thus get loans. This describes an example of

a. symmetrical information b. adverse selection c. natural selection d. moral hazard e. the winner's curse