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Author Question: The substantial risks taken by financial intermediaries like Sallie Mae because they are effectively ... (Read 47 times)

TFauchery

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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


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xoxo123

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Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

False


TFauchery

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

komodo7

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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