Question: 3. a) Discuss how asymmetric information affects lending/borrowing. (12 marks) b) Discuss the solutions to the moral hazard problem in debt markets. (13 marks)

 3. a) Discuss how asymmetric information affects lending/borrowing. (12 marks) b)

3. a) Discuss how asymmetric information affects lending/borrowing. (12 marks) b) Discuss the solutions to the moral hazard problem in debt markets. (13 marks)

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