As a Result of Asymmetric Information

question 63

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.

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