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Author Question: The loan market is in equilibrium. If the demand for land decreases, the rental rate of land ... (Read 192 times)

karateprodigy

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on: Jun 29, 2018
The loan market is in equilibrium. If the demand for land decreases, the rental rate of land ________.
 
  A) might rise or fall
  B) rises
  C) falls
  D) remains unchanged

Question 2

What is private information and what problems does it create?
 
  What will be an ideal response?


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kxciann

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

C

Answer to Question 2

Private information is information that is available to one person but too costly for anyone else to obtain. Private information creates two problems: moral hazard and adverse selection.


karateprodigy

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Reply #2 on: Jun 29, 2018
Thank you


kxciann

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Reply #3 on: Jun 29, 2018
No problemo


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