The most direct and important consequence of an increase in asymmetric information problems is ________
A) a decrease in the probability of loan repayment
B) inability to assess the probability of loan repayment
C) unwillingness of borrowers to accept the market rate of interest
D) inability of creditors to acquire enough funds to meet borrowers' demand
B
You might also like to view...
Which of the following is an assumption used when drawing a production possibilities frontier?
i. Human wants and desires are limited to what is available. ii. Only two goods are considered. iii. The level of technology is fixed and unchanging. A) i only B) ii only C) i and iii D) ii and iii E) i, ii, and iii
Theatres charge lower prices for a matinee and usually don't accept coupons for the night showing of movies because
A) consumers that attend the matinee have a higher price elasticity of demand. B) consumers that attend the night show have a lower price elasticity of demand. C) it increases profits compared to charging a single price. D) All of the above.