The problem of _____ can arise when a seller cannot obtain reliable information from buyers

An increase in the real interest rate does which of the following?

A) increases the demand for loanable funds B) reduces saving C) reduces consumption spending D) reduces the demand for loanable funds

For allocative efficiency to hold

A) average total cost is minimized in production. B) average variable cost is minimized in production. C) price must equal the marginal cost of the last unit produced. D) price must equal marginal revenue of the last unit sold.