Assignment:
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?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.