Explain why low-income households have limited liability in credit markets
Name two important consequences that result from limited liability and asymmetric information in the credit market.
Using the two terms you listed in part b above, categorize the following as being examples of either one, the other, or neither:
Choosing a high value, but risky agricultural project
Only individuals wanting to invest on projects that offer high reward, but low probability of success are the ones seeking loans
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