Solutions to the moral hazard in equity contracts include all of the following EXCEPT
A) government regulations to increase information.
B) the use of financial intermediaries.
C) the use of debt contracts.
D) government ownership of resources.
D
Economics
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Nancy buys a $150,000 home using $30,000 of her own money and gets a mortgage for the remaining $120,000 . If the price of the house increases 5%, what will Nancy's capital gain be?
a. $30,000 b. $31,500 c. $35,000 d. $37,500 e. $45,550
Economics
An appropriate government policy toward negative externalities is to
a. subsidize the activity that creates the negative externality. b. impose a tax or fine on the activity that creates the negative externality. c. pay money to the party that creates the negative externality. d. impose a tax on recipients of the negative externality.
Economics