What kind of a payment provision should a contract governing a principal/agent relationship contain?
Contracts that govern a principal/agent relationship must contain payment provisions that induce the agent to make efforts that the principal wants made on his behalf, given that he cannot monitor the agent and that random events can affect the results the agent produces.
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If the nominal interest rate on a one-year loan was 7%, the actual inflation rate over the year was 3% and the expected inflation rate over the year was 2.5%, then the expected real interest rate equals
A) 4.5%. B) 4.0%. C) 3.75%. D) 3.5%.
How do car dealers help reduce adverse selection?
What will be an ideal response?
Explain the reason why the debt-to-GDP ratio in the United States is expected to explode between now and the year 2042
What will be an ideal response?
The part of a corporation's net income that is paid out to the stockholders is
a. preferred stock b. bonds c. interest payments d. dividends e. reinvested profit