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The Most Direct and Important Consequence of an Increase in Asymmetric

Question 71

Multiple Choice

The most direct and important consequence of an increase in asymmetric information problems is ________.


A) a decrease in the probability of loan repayment
B) inability to assess the probability of loan repayment
C) unwillingness of borrowers to accept the market rate of interest
D) inability of creditors to acquire enough funds to meet borrowers' demand

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