Which of the following represent examples of adverse selection?
A) Unhealthy people are more likely to want health insurance.
B) Careless drivers purchasing extra auto insurance.
C) Risk averse individuals choosing to buy extra insurance.
D) all of the above
E) A and B only
E
Economics
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When traders perceive a permanent money supply adjustment, short-term nominal interest rates ___affected, the expected exchange rate ___ affected, and the spot exchange rate ___ affected.
a. are· is· is b. are; is; is not c. are not; is not; is not d. are; is not; is
Economics
In the above figure, if household consumption is positively related to household income, then an increase in household income will
A) shift the line rightward. B) shift the line leftward. C) make the line positively sloped. D) cause a movement along the line.
Economics