Loretta sells Timmy a baseball with a forged autograph of Babe Ruth. Loretta knew that the autograph was forged but told Timmy it was authentic, and even presented him with fake documentation verifying its authenticity. Economists would call this an:.
A. inefficient exchange, as at least one party used false market information.
B. efficient exchange, as any type of voluntary exchange promotes efficiency.
C. inefficient exchange because there were externalities involved.
D. efficient exchange, assuming Loretta was not intentionally trying to trick Timmy