A monopolist may make a profit

Government-backed deposit insurance ________

A) protects "good" banks from the misdeeds of "bad" banks B) is intended to encourage banks to pursue high-risk activities C) is an example of prudential regulation D) is an example of government-directed credit

It is difficult to balance the budget every year because:

A. political battles often cause blatant deficit spending that could be avoided. B. while economic downturns are easy to predict, booms are not. C. it is hard to get agreement on how to spend discretionary funds. D. it is unlikely that revenues will exactly equal planned expenditures in any given year.