Cba folland et al adverse selection everyone has an

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Unformatted text preview: ice of A when B is an option is defined by the cost of giving up B Unit costs, total costs, average cost, marginal cost Flows v. stocks: flow refers to an amount like GDP, that unforlds over a defined time period (a year for example); a stock is an amount as defined at a point in time Stock of debt went hugely up to about 110% in WWII and after a little growth it drops back down. CBA Folland et al Adverse selection: everyone has an equal risk of falling ill, but in reality that’s not the case, some...
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