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Author Question: According to liquidity preference theory, as real income increases, so does ________. A) the ... (Read 24 times)

amal

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on: Jun 30, 2018
According to liquidity preference theory, as real income increases, so does ________.
 
  A) the supply of real money balances
  B) the demand for real money balances
  C) the real interest rate
  D) all of the above
  E) none of the above

Question 2

The risk that a borrower has a greater understanding about their potential future behavior than a potential lender is known as ________.
 
  A) the problem of adverse selection
  B) the problem of moral hazard
  C) ornamental torsion
  D) the asymmetric innovation problem


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sabina576

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

B

Answer to Question 2

B


amal

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

tuate

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

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