Which classical economist observed that, when the money supply expanded after gold discoveries, it took some time for prices to rise, and in the meantime, the economy enjoyed higher employment and production?

When people by insurance they often adopt risky behavior. This is an example of

A) adverse selection. B) moral hazard. C) a negative externality. D) moral hazard and a negative externality.

Refer to the budget line shown in the diagram. Given the same money income, reductions in the prices of both products C and D will:

A. shift the budget line outward on the horizontal axis but leave it anchored at "10" on the
vertical axis.
B. shift the budget line to the left.
C. shift the budget line to the right.
D. have no effect on the budget line.