A reduction in housing starts, typically due to __________ interest rates, is often thought to precede __________

What is the present value of $100 three years from now at an interest rate of 6%?

A) $83.96 B) $82 C) $94.34 D) $119.10

Which of the following is a reason to think that government action may not be valuable to improve market outcomes with asymmetric information?

a. The private market can sometimes deal with information asymmetries using signaling and screening. b. The government rarely has more information than the private parties. c. Government actions have their own imperfections. d. All of the above are correct.