When the economy is operating below full-employment capacity, a recessionary gap is said to exist

When those most likely to produce the outcome insured against are the ones who purchase insurance, insurance companies are said to face the problem of

A) fraudulent claims. B) moral hazard. C) adverse selection. D) pecuniary purchases.

Unlike a banking crisis, an exchange rate crisis rarely results in a deep recession

Indicate whether the statement is true or false