Refer to the above figure. Which panels could represent the situation if the Fed had engaged in open market operations?

There is clear evidence of a race-to-the-bottom internationally, regarding working conditions and the environment

Indicate whether the statement is true or false

The problem faced by the lender that the borrower may take on additional risk after receiving the loan is called

A) adverse selection. B) moral hazard. C) transactions costs. D) diversification.