Because of the presence of asymmetric information problems in credit markets, an expansionary monetary policy causes a ________ in net worth, which ________ the adverse selection problem, thereby ________ increased lending to finance investment
spending. A) decline; increases; encouraging
B) rise; increases; discouraging
C) rise; reduces; encouraging
D) decline; reduces; discouraging
C
Economics
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Which of the following statements is TRUE?
I. A firm that is not economically efficient does not maximize profit. II. Economic efficiency depends on the relative costs of resources. III. A technological efficient firm is also economically efficient. A) I only B) II only C) II and III D) I and II
Economics
What is the major anticipated benefit of global capital markets? Do all countries gain?
What will be an ideal response?
Economics