Because information is scarce
A) helps explain why equity contracts are used so much more frequently to raise capital than are debt contracts.
B) monitoring managers gives rise to costly state verification.
C) government regulations, such as standard accounting principles, have no impact on problems such as moral hazard.
D) developing nations do not rely heavily on banks for business financing.
B
Economics
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A) fall in the country's GDP B) fall in the country's consumer price index C) fall in the country's GNP D) fall in the country's income per worker
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U.S. farm subsidies are a sticking point in negotiating freer international trade agreements
a. True b. False
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