The following is NOT an example of a potential monitoring solution to moral hazard

Other things equal, when the Fed raises the reserve requirement, the banking system's excess reserves will fall, the deposit expansion multiplier will decline, and the money supply will decrease

a. True b. False Indicate whether the statement is true or false

The law of diminishing returns results in:

A. an eventually rising marginal product curve. B. a total product curve that eventually increases at a decreasing rate. C. an eventually falling marginal cost curve. D. a total product curve that rises indefinitely.