An insurance company is likely to attract customers who want to purchase health insurance because they know better than the company that they are more likely to file a claim on a policy. This situation describes

When a foreign company engages in riskier behavior after it has received international investment funds, it is known as

A) portfolio investment. B) moral hazard. C) foreign direct investment. D) adverse selection.

Monetary and price instability will

a. make it easier for both individuals and businesses to plan wisely for the future. b. generate uncertainty, and encourage investors and businesses to move their activities to countries with a more stable monetary environment. c. encourage businesses to invest and expand their future output. d. encourage domestic citizens to increase their rate of saving.