By the End of the 1980s,American Foreign Debt to the Rest

question 37

Multiple Choice

By the end of the 1980s,American foreign debt to the rest of the world had increased from

• A) $ 140 billion to more than $ 1 trillion.
• B) $ 440 billion to more than $ 2 trillion.
• C) $ 200 billion to more than $ 3 trillion.
• D) $ 350 billion to more than $ 2 trillion.
• E) $ 750 billion to more than $ 2 trillion.

---

Definitions:

Market Signaling

Process by which sellers send signals to buyers conveying information about product quality.

Asymmetric Information

A situation in which one party in a transaction has more or better information than the other, often leading to an imbalance in power and potentially unfair outcomes.

Product Quality

The measure of the perceived value, effectiveness, and reliability of a product as judged by the consumer.

Moral Hazard Problem

A situation where one party engages in risky behavior knowing that it is protected against the consequences, usually by a contract or an agreement, leading to suboptimal outcomes for the other party.