Author Question: In the two-period model, the nature of the asymmetric information is that A) only the bank knows ... (Read 49 times)

shofmannx20 · **on:** Jun 30, 2018

In the two-period model, the nature of the asymmetric information is that

A) only the bank knows who the bad borrowers are.
B) only borrowers know whether they are bad or not.
C) only borrowers know the value of their collateral.
D) only banks can value the collateral.

Question 2

The time constraint for the consumer is

A) the amount of time for decision making.
B) expressed as leisure time - time spent working = total time available.
C) expressed as leisure time - sleep time = time spent working.
D) expressed as leisure time + time spent working = total time available.