Some Economists Are Concerned That the fiNancial Rescue Provided by the TARP

question 61

Multiple Choice

Some economists are concerned that the financial rescue provided by the TARP will encourage financial investors and firms to take on greater risks in the future. This is an example of

• A) moral hazard.
• B) adverse selection.
• C) a prisoner's dilemma.
• D) shadow banking.

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Definitions:

Formulating Plans

The process of creating strategies or outlining steps to achieve a specific goal, often involving problem-solving and decision-making skills.

Thalamus

A small structure within the brain that relays motor and sensory signals to the cerebral cortex.

Sensory Relay Station

A term typically referring to the thalamus, a structure in the brain that serves as a hub for transmitting sensory information to the cerebral cortex.

Pituitary

A small, pea-sized gland located at the base of the brain, known as the "master gland," it regulates vital body functions and general wellbeing.