The substantial risks taken by financial intermediaries like ...

[TFauchery]

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

[xoxo123]

Answer to Question 1

c

Answer to Question 2

False

[TFauchery]

Excellent

[laurnthompson]

Thanks for the timely response, appreciate it