Moral hazard is a problem associated with debt and equity contracts arising from: a. the borrower's incentive to undertake highly risky investments.
b. the owners' inability to ensure that managers will act in the owners' interest.
c. the difficulty lenders have in sorting out good credit risks from bad credit risks.
d. All of these.
e. only the borrower's incentive to undertake highly risky investments and the owners' inability to ensure that managers will act in the owners' interest of these.

Shelly bought a house five years ago for $150,000 and obtained an 80% loan. now the home is worth $140,000 and her loan balance has been reduced by $12,000. what is shelly's current equity?

1. demand terminology complete the following table by selecting the term that matches each definition. definition quantity demanded demand curve demand schedule law of demand a graphical object showing the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices the amount of a good that buyers are willing and able to purchase at a given price a table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices the claim that, with other things being equal, the quantity demanded of a good falls when the price of that good rises apply your understanding of the previous key terms by completing the following scenario with the appropriate terminology. your coworker becky is really concerned about a project that she has just been assigned. she is in charge of analyzing and determining conditions in the market for televisions from an extensive sales report. if becky's boss is interested in a graphical representation of the relationship between the pric

Susie buys two goods - rounds of golf and massages. suppose that the price of a round of golf is $20, and the price of a massage is $30. in a typical week susie will play two rounds of golf, getting 20 units of satisfaction from the second round. she normally buys three massages each week, with the third giving her 30 units of satisfaction. if she were to buy a fourth massage in a week, it would give her 20 units of satisfaction. if the price of massages is reduced to $15, which of the following outcomes might we expect to occur? a) susie would leave her consumption choices unchanged because of diminishing marginal utility in the consumption of massages. b) susie would buy more massages and more rounds of golf, as predicted by the substituion effect. c) susie would buy more massages and fewer rounds of golf, as predicted by the substitution effect. d) susie would buy more massage and fewer rounds of golf, as predicted by income effect.