Adverse selection can occur if:
a. high-risk persons insure themselves more heavily than low-risk persons.
b. high-risk persons claim coverage which cannot be borne by the insurers.
c. high-risk persons do not conceal information from the insurer.
d. high-risk persons make an effort to take less risk in the presence of an insurance cover.
A
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The _______ tells us how many additional dollars of deposits are created with each additional dollar of reserves.
A. reserve ratio, calculated as 1 divided by the money multiplier, B. money multiplier, calculated as 1 divided by the reserve ratio, C. reserve ratio, calculated as 1 minus the money multiplier, D. money multiplier, calculated as 1 minus the reserve ratio,
Which of the following raises domestic prices when demand is relatively high?
A. Lump sum tariff B. Domestic subsidies C. Lump sum tariff and excise tariff D. Excise tariff