The value of the expenditure multiplier in the long run is

Collateral requirements lessen the consequences of ________ because the collateral reduces the lender's losses in the case of a loan default and it reduces ________ because the borrower has more to lose from a default

A) adverse selection; moral hazard B) moral hazard; adverse selection C) adverse selection; diversification D) diversification; moral hazard

Suppose there are two types of consumers with two different demand curves, and the marginal cost of the monopoly is $10. What could be the possible price under two-part pricing that will maximize the monopoly profit?

A) $8 B) $9 C) $10 D) $12