Mom's Bakery goes out of business due to decreasing sales resulting from the dramatic increase in people on low-carbohydrate diets. The decrease in business also results in Mom's defaulting on the loan they have with the bank. This is an example of

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asymmetric information in financial markets.

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symmetric information in financial markets.

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moral hazard in financial markets.

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lack of perfect information in financial markets.

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Mom's Bakery goes out of business due to decreasing sales resulting from the dra...

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