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Author Question: Adverse selection is the tendency for people who accept contracts to be those who A) buy goods ... (Read 27 times)

magmichele12

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on: Jun 29, 2018
Adverse selection is the tendency for people who accept contracts to be those who
 
  A) buy goods and then regret it later.
  B) buy goods for more than their own reservation price.
  C) plan to use private information to the disadvantage of the less well-informed party.
  D) engage in a number of searches larger than that specified in the contract.

Question 2

________ in the desired reserve ratio will ________ the money multiplier.
 
  A) An increase; have no effect on
  B) An increase; decrease
  C) A decrease; decrease
  D) A decrease; will have no effect on


cassie_ragen

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

B


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