This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If a principal and agent have an efficient contract, then A) one of them must be more risk-averse ... (Read 125 times)

Mr.Thesaxman

  • Hero Member
  • *****
  • Posts: 514
on: Jul 1, 2018
If a principal and agent have an efficient contract, then
 
  A) one of them must be more risk-averse than the other.
  B) neither can be made better off without harming the other.
  C) they must have symmetric information.
  D) the principal bears more of the risk.

Question 2

Government policies that encourage savings
 
  A) reduce interest rates.
  B) increase interest rates.
  C) have no effect on interest rates.
  D) lower the net present value of all investments.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

234sdffa

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

A


Mr.Thesaxman

  • Member
  • Posts: 514
Reply 2 on: Jul 1, 2018
:D TYSM

emsimon14

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Cleaning Agent Cleaning Agent
Principal Characteristics of REM and Slow-Wave Sleep Principal Characteristics of REM and Slow-Wave Sleep
Risk Factors for Cardiovascular Disease Risk Factors for Cardiovascular Disease
Risk Factors for Alzheimer's Disease Risk Factors for Alzheimer's Disease
Improving your flexibility can help you reduce muscle soreness and lower your risk of injury Improving your flexibility can help you reduce muscle soreness and lower your risk of injury
Pregnant and Lactating Women, Children, the Ill, and Older Adults Are at the Highest Risk Pregnant and Lactating Women, Children, the Ill, and Older Adults Are at the Highest Risk
Video: Secondary and tertiary levels of protein structure Animation

For a complete list of videos, visit our video library