A recession causes
a. transfer payments and corporate profits to increase
b. military spending and corporate profits to increase
c. unemployment to increase and transfer payments to decrease
d. transfer payments to increase and corporate profits to decrease
e. household income and government transfer payments to decrease
D
You might also like to view...
A manager in a corporation is likely to be
A) both a principal and an agent. B) neither a principal nor an agent. C) an agent but not a principal. D) a principal but not an agent.
Which of the following best illustrates the problem of moral hazard?
A) a professional baseball team that consistently drafts poor players B) an individual that is hiding a pre-existing condition from a health insurance provider C) an increase in the level of one's income will lead to a decrease in demand for inferior goods D) an economic agent that engages in risky behavior once a loan contract is signed