According to agency theory, a financial crisis results from ...

[lb_gilbert]

According to agency theory, a financial crisis results from ________ that disrupts the flow of funds from lender-savers to borrower-spenders.
 
  A) an increase in asymmetric information
  B) a macroeconomic shock
  C) the existence of asymmetric information
  D) a decrease in saving

Question 2

The property of diminishing marginal rate of substitution follows from the property that the indifference curves are
 
  A) downward sloping.
  B) upward sloping.
  C) bowed in toward the origin.
  D) bowed out from the origin.

[kswal303]

Answer to Question 1

A

Answer to Question 2

C

[lb_gilbert]

TYSM

[LVPMS]

Excellent