In the private placement market the term "due diligence" means
A) an investor finding an honest agent from whom to buy a bond.
B) a borrower finding an honest agent to sell its bonds.
C) conducting a credit analysis of the borrower.
D) an agent tailoring terms of the placement to meet investor needs.
C
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What is the effect on the aggregate demand curve from an increase in the price level? In particular, does the aggregate demand curve shift leftward or rightward?
What will be an ideal response?
In the market for used cars, if buyers and sellers have perfect information about the quality of cars, then
A) all cars will sell for the same price and there is no asymmetric information problem. B) all cars will sell for the same price and there is an asymmetric information problem. C) cars sell for their true value and there is no asymmetric information problem. D) all cars will sell for the same price and there is a moral hazard problem.
_____ is the practice of using extra resources to compete for obtaining monopoly, and leads to _____
a. X-inefficiency; a deadweight loss b. Rent seeking; a deadweight loss c. X-inefficiency; a loss in producer surplus d. Rent seeking; a loss in producer surplus
Which of the following equations is correct?
A) Saving = Disposable income + Consumption B) Saving = Disposable income x Consumption C) Disposable income = Consumption - Saving D) Saving = Disposable income - Consumption