Because of the Presence of Asymmetric Information Problems in Credit

Multiple Choice

Because of the presence of asymmetric information problems in credit markets,an expansionary monetary policy causes a ________ in net worth,which ________ the adverse selection problem,thereby ________ increased lending to finance investment spending.

A) decline;increases;encouraging
B) rise;increases;discouraging
C) rise;reduces;encouraging
D) decline;reduces;discouraging