In the two-period model with asymmetric information, the presence of bad borrowers who always default
A) makes good borrowers better off.
B) matters only for the loan interest rate faced by bad borrowers.
C) affects the equilibrium profits of banks.
D) affects good borrowers adversely.
D
Economics
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To measure economic welfare, one needs only to measure real GDP
Indicate whether the statement is true or false
Economics
Identify the reasons why the quantity demanded of a product increases as the price of that product decreases
a. as the price declines, the real income of the consumer increases b. as the price of product A declines, it makes it more attractive than product B c. as the price declines, the consumer will always demand more on each successive price reduction d. a and b e. a and c
Economics