Conditions that likely contributed to a credit crunch during the global financial crisis include
A) capital shortfalls caused in part by falling real estate prices.
B) regulated hikes in bank capital requirements.
C) falling interest rates that raised interest rate risk, causing banks to choose to hold more capital.
D) increases in reserve requirements.
A
Economics
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Explain how a distorting tax can improve efficiency when there are already present other taxes that distort decisions as well
What will be an ideal response?
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If an insurance company underestimates the number of high-cost customers, it is likely to face ________.
A) adverse selection B) the principal-agent problem C) moral hazard D) the bad apple problem
Economics