Author Question: The substantial risks taken by financial intermediaries like Sallie Mae because they are effectively ... (Read 29 times)

TFauchery · **on:** Jun 30, 2018

The substantial risks taken by financial intermediaries like Sallie Mae because they are effectively insured are examples of what economists refer to as:
a. sub-prime behavior.
b. asymmetric information.
c. moral hazard.
d. countercyclical policy.

Question 2

According to the law of demand, when the price of a BMW or a Gucci purse increases, the quantity demanded of these goods will also increase because consumers consider them prestigious.
a. True
b. False
Indicate whether the statement is true or false