When Homeowners Sell a House, Part of the Paperwork They

Multiple Choice

When homeowners sell a house, part of the paperwork they complete is a statement of disclosure on which the homeowners are supposed to reveal everything that they know is wrong with the house. The purpose of the statement of disclosure is to try to solve the

A) principal-agent problem.
B) moral-hazard problem.
C) adverse-selection problem.
D) signaling problem.