Author Question: The most direct and important consequence of an increase in asymmetric information problems is ... (Read 59 times)

Awilson837 · **on:** Jun 30, 2018

The most direct and important consequence of an increase in asymmetric information problems is ________.

A) a decrease in the probability of loan repayment
B) inability to assess the probability of loan repayment
C) unwillingness of borrowers to accept the market rate of interest
D) inability of creditors to acquire enough funds to meet borrowers' demand

Question 2

In the monetary intertemporal model, the long-run effects of an increase in the level of money include

A) an increase in employment.
B) lower output.
C) higher real wages.
D) higher nominal wages.