A downward movement along the investment demand curve would be caused by a(n):
a. increase in the expected rate of return on investment caused by an increase in business confidence.
b. decrease in the expected rate of return on investment caused by a decrease in business confidence.
c. increase in the rate of interest.
d. decrease in the rate of interest.
d
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Moral hazard occurs when contracts are written in such a way that
A) the interests of agent and principal converge. B) the interests of agent and principal diverge. C) agents will wish to maximize the principal's utility. D) production and risk-bearing efficiency are achieved.
Which of the following is not a threat to bricks-and-mortar video rental stores?
a. on-demand movies delivered by broadband cable b. rental services that deliver DVDs by mail c. digital movies and TV shows available on Wal-Mart's Web site d. None of the answers is a threat. e. All of the answers are threats.