urbExp15 | -.0509697 .081851 -0.62 0.534 -.2116054 .109666 urbExp23 | -.0727813 .1016558 -0.72 0.474 -.2722846 .126722 _cons | 5.201936 .1912306 27.20 0.000 4.826639 5.577233 ---------------------------------------------------------------------------

11) Moral hazard is an important concern of insurance arrangements because the existence of insurance A) provides increased incentives for risk taking. B) is a hindrance to efficient risk taking. C) causes the private cost of the insured activity to

B) are perfect substitutes. C) are substitutes only if the investor is given a premium incentive. D) are substitutes but not perfect substitutes. 10) Three factors explain the risk structure of interest rates: A) liquidity, default risk, and the inco

ECON | 203 | Principles of Macroeconomics | study guides |

Econ_402_exam_2_2014_REVISED_SOL.pdf-Econ 402/604 Exam 2 Fall 2014