Which of the following is assumed constant in the short-run Classical model?

It is difficult for a private market to provide the economically efficient quantity of a public good because

A) by law governments cannot use cost-benefit analysis to determine this quantity. B) it is too expensive to produce the necessary amount of the good. C) individual preferences are not revealed in the market for the good. D) public goods produce positive and negative externalities.

Securitization can not help financial intermediaries

A) diversify their portfolios. B) avoid bankruptcy. C) attract more investors to buy and hold their securities. D) decrease the cost of borrowing.