A borrower who takes out a loan usually has better information about the potential returns and risk of the investment projects he plans to undertake than does the lender. This inequality of information is called
A) moral hazard.
B) asymmetric information.
C) noncollateralized risk.
D) adverse selection.
B
Economics
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The balanced budget multiplier is equal to
a. 1/(1 – MPC) b. 1/(1 – MPC) + –MPC/(1 – MPC) c. MPC/(1 – MPC) d. (1 – MPC)/MPC e. 2
Economics
Jen has a PhD in economics and has been working for 3 years part-time as an instructor; she has always hoped to be hired as a full-time faculty member. The best way to describe Jen is to say she is:
A. a discouraged worker. B. unemployed. C. underemployed. D. overemployed.
Economics