Which of the following statements is true?
A) A market imperfection exists if the expected borrowing rate from the lender's perspective differs from the expected borrowing rate from the borrower's perspective.
B) A market imperfection exists if the promised savings rate is higher than the promised borrowing rate.
C) A market imperfection exists if the promised borrowing rate is higher than the expected borrowing rate.
D) All of the above are market imperfections.
Correct Answer:
Verified
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