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Author Question: If a principal and agent have an efficient contract, then A) one of them must be more risk-averse ... (Read 93 times)

Mr.Thesaxman

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on: Jul 1, 2018
If a principal and agent have an efficient contract, then
 
  A) one of them must be more risk-averse than the other.
  B) neither can be made better off without harming the other.
  C) they must have symmetric information.
  D) the principal bears more of the risk.

Question 2

Government policies that encourage savings
 
  A) reduce interest rates.
  B) increase interest rates.
  C) have no effect on interest rates.
  D) lower the net present value of all investments.


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234sdffa

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Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

A


Mr.Thesaxman

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

bulacsom

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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