Author Question: Deposit insurance can lead to ________. A) an increase in adverse selection B) a decrease in ... (Read 56 times)

nmorano1 · **on:** Jun 30, 2018

Deposit insurance can lead to ________.

A) an increase in adverse selection
B) a decrease in bank costs
C) a decrease in bank lending rates
D) an increase in risks banks take on

Question 2

The MP Curve ________.

A) demonstrates how central banks respond to changes in inflation with changes in the interest rate
B) shows how changes in interest rates affect equilibrium output
C) explains short run fluctuations in output and inflation
D) all of the above
E) none of the above