Adverse selection is a barrier to financing global growth because
A) of the differences between financing using loans, portfolio investment and foreign direct investment.
B) if investors have trouble identifying high-risk firms they may be unwilling to lend funds to creditworthy firms.
C) firms sometimes have trouble determining whether they need funds or not.
D) there is the possibility that the funds are used for riskier behavior than the lender agreed to.
B
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Persistent U.S. deflation between 1879 and the mid-1890s was primarily due to the fact that the ___________ was growing faster than the _________
a. supply of money; demand for money b. demand for money; supply of money c. demand for money; demand for goods d. demand for goods; supply of money
Minority workers are underrepresented and have less access to certain high-paying occupations. This illustrates:
A. human-capital discrimination. B. the crowding model. C. the taste-for-discrimination model. D. statistical discrimination.