The putting up of outside collateral is
A) one form of the moral hazard problem.
B) one form of the adverse selection problem.
C) a signal of a high-quality borrower.
D) a signal of a low-quality borrower.
C
Economics
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Which of the following is not an advantage of starting a new business as a partnership?
A) The owners have complete control over the business. B) A partnership can easily attain additional funding. C) A partnership has few government rules and regulations to comply with. D) Business profits are only taxed once, not twice.
Economics
In Figure 3-7 above, a $250 increase in AP causes
A) Y to increase by $1250. B) induced saving to increase by $250. C) consumption to increase by $1000. D) all of the above.
Economics