When borrowers who do not intend to repay are able to hide their bad credit histories, a lender's well-intentioned borrowers should
a. complain to regulatory authorities
b. withdraw their loan applications
c. offer more collateral in exchange for lower interest charges
d. divulge still more information on their loan applications
e. hope for a pooling equilibrium
c
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Sales taxes are generally progressive.
A. True B. False C. Uncertain
In which of these developing regions has food production per capita steadily fallen over the last quarter century?
(a) Africa. (b) East Asia. (c) South Asia. (d) Latin America.
An efficient financial system
A) must disseminate information to lenders about the quality of financial claims issued. B) provides minimal information about financial markets. C) provides perfect information regarding investment opportunities to savers. D) does not provide any information to borrowers.
Suppose there is an unusually large crop of apples this year. How might this affect the market for apples?
A. The demand would increase, increasing both equilibrium price and quantity. B. The supply would increase, decreasing equilibrium price and increasing equilibrium quantity. C. The demand would decrease, decreasing both equilibrium price and quantity. D. The supply would decrease, increasing equilibrium price and decreasing equilibrium quantity.