Banks help to overcome the problem of asymmetric information by:
a. lending to a single rich borrower and not diversifying their portfolio.
b. acquiring expertise in evaluating the credit histories of borrowers.
c. threatening borrowers

Technological change allows the economy to produce more output with the same amount of capital and labor

Indicate whether the statement is true or false

The result of the balanced budget multiplier is that aggregate demand changes by the amount of the change in:

a. government spending. b. tax revenue. c. government spending plus tax revenue. d. government spending minus tax revenue.