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    Exam 14: Transaction Costs, asymmetric Information, and Behavioral Economics
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    Individuals Who Have a Tendency to Default Are Usually More
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Individuals Who Have a Tendency to Default Are Usually More

Question 109

Question 109

Multiple Choice

Individuals who have a tendency to default are usually more willing to pay high interest rates and thus get loans.This describes an example of _____


A) symmetrical information.
B) adverse selection.
C) natural selection.
D) moral hazard.
E) the winner's curse.

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