An example of moral hazard is
a. workers working diligently even though the boss is not looking
b. health care insured forgoing their diet and exercise
c. drivers of safer cars turning their phones off before driving
d. borrowers investing their loan proceeds exactly as the bank requires
b
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Which of the following products would be used in calculating GDP?
(A) Plastic manufactured in a factory in Kentucky and sold to toy manufacturers around the world to make plastic toys. (B) Cotton cloth manufactured in India and sold to clothes makers in the United States. (C) Toys manufactured in China at a factory owned by a U.S. company. (D) Cars manufactured in Tennessee at a factory owned by a Japanese automobile company.
Which theory explains all three facts about the term structure?
A) expectations B) segmented markets C) preferential treatment D) liquidity premium