According to your textbook, expansionary monetary policy
A) encourages entrepreneurs to invest in projects that only appear profitable.
B) creates a temporary "boom," or economic expansion.
C) will ultimately be followed by a "bust," as entrepreneurs learn of their forecasting errors.
D) tends to generate all of the above.
D
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In the private placement market the term "due diligence" means
A) an investor finding an honest agent from whom to buy a bond. B) a borrower finding an honest agent to sell its bonds. C) conducting a credit analysis of the borrower. D) an agent tailoring terms of the placement to meet investor needs.
Firms that anticipate hold-up, choose organizational or contractual forms
a. To give each party both the incentive to make relationship-specific investments b. To give each party both the incentive to ignore sunk costs c. To give each party both the incentive to reduce investments in reputation d. To give each party both the incentive to make non-specific investments