Author Question: The risk that a borrower has more information about their previous behavior than a potential lender ... (Read 35 times)

codyclark · **on:** Jun 30, 2018

The risk that a borrower has more information about their previous behavior than a potential lender is known as the ________.

A) moral hazard problem
B) adverse selection problem
C) time-space discontinuity
D) tertiary behavior problem

Question 2

Under a flexible exchange rate, an increase in the domestic money supply leads to

A) a devaluation of the domestic currency.
B) a revaluation of the domestic currency.
C) a depreciation of the domestic currency.
D) an appreciation of the domestic currency.