Unformatted text preview: agent problem. Because debt contracts are not subject to this particular principal agent problem, one way to mitigate this problem is to use debt contacts rather than equity contracts. CHAPTER 9 2. Multiple-Choice Problems 1-A; 2-C; 3-A; 4-C; 5-A; 6-B; 7-C 1...
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- Spring '07
- Market failure, Principal-agent problem, Multiple-Choice Problems 1-A