Which of the following is an example of a nondurable good?

Refer to the given market-for-money diagrams. If the interest rate was at 3 percent, people would:

A.  sell bonds, which would cause bond prices to fall and the interest rate to rise.
B.  buy bonds, which would cause bond prices to fall and the interest rate to rise.
C.  sell bonds, which would cause bond prices to rise and the interest rate to rise.
D.  buy bonds, which would cause bond prices to rise but have an uncertain effect upon the
interest rate.

Moral hazard:

A. is about the unobserved characteristics of people. B. is about the unobserved actions of people. C. occurs before the parties have entered into an agreement. D. None of these statements is true.