PACh89 - agent problem. Because debt contracts are not...

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Econ 520 (Spring 2007) Answers to Problems for Chapters 8-9 Masao Ogaki CHAPTER 8 2. Multiple-Choice Problems 1-A; 2-B; 3-E; 4-D; 5-B; 6-D; 7-C 3. Short Answer/Essay Problems the separation leads to a special type of moral hazard called the principal
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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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This note was uploaded on 07/17/2008 for the course ECON 520 taught by Professor Ogaki during the Spring '07 term at Ohio State.

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