As a Result of Asymmetric Information

Multiple Choice

As a result of asymmetric information

A) small firms are better able to secure external financing than are large firms.
B) investment spending may fall in a recession even if true investment opportunities do not change.
C) short-run fluctuations in output are smaller than they would otherwise be.
D) fluctuations in the amount of internal funds have large effects on the investment in plant and equipment carried out by mature firms.