An example of moral hazard is
a. people drive as carefully in icy conditions with antilock brakes as without
b. people drive as safely with more airbags as without
c. football players with safer helmets 'spear' with their heads more often when tackling
d. people read the medicine warnings as carefully when self-medicating as with a doctor's prescription
c
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Since October 2008, Congress has granted the Fed an authority to
A) pay banks interest on both required reserves and excess reserves. B) charge banks interest on both required reserves and excess reserves. C) charge banks interest on required reserves but pay them interest on excess reserves. D) charge banks interest on excess reserves but pay them interest on required reserves.
When the government's outlays exceed its tax revenues, the national debt
A) shrinks thanks to the budget surplus. B) grows to finance the budget deficit. C) grows to finance the budget surplus. D) shrinks thanks to the budget deficit. E) does not change because it has nothing to do with government outlays and tax revenue.