The "lemons" problem is used to explain the concept of:

Which of the following characteristics is a precondition for economic growth?

i. economic freedom ii. free markets iii. active government policy to discourage saving A) ii only B) Both ii and iii C) i only D) iii only E) Both i and ii

The equilibrium real interest rate in Belgium will be

A) generally above the world real interest rate. B) generally below the world real interest rate. C) equal to the world real interest rate. D) determined by the equilibrium between desired domestic saving and desired domestic investment.