Examlex
When interest rates are low, people expect them to rise.
Moral Hazard
A situation in which one party engages in risky behavior or fails to act in good faith because the negative consequences are borne by another party.
Coase Theorem
An economic theory that suggests that if trade in an externality is possible and there are no transaction costs, parties can negotiate solutions to conflict that lead to an efficient outcome regardless of the initial allocation of property.
Externalities
Economic side effects or by-products that affect an uninvolved third party; can be positive or negative.
Pollution Abatement
Measures and processes undertaken to reduce, control, or eliminate pollution from various sources.
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Q132: If the Fed sells $500 in bonds,