What role do hidden-action problems play

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Reference no: EM131457253

Question: What role do hidden-action problems play in causing the borrowing rate for funds to be greater than the lending rate? Can we eliminate hidden-action problems? Why or why not? How does the difference in borrowing and lending rates affect the taxpayer's ability to undertake clientele-based arbitrage?

Reference no: EM131457253

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What role do hidden-action problems play : What role do hidden-action problems play in causing the borrowing rate for funds to be greater than the lending rate? Can we eliminate hidden-action problems?

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