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________ Refers to a Decrease in the Willingness of Banks

Question 3

Multiple Choice

________ refers to a decrease in the willingness of banks to lend,while an impairment of the ability of nonfinancial firms to borrow is a consequence of ________.


A) Adverse selection;moral hazard
B) Deleveraging;debt deflation
C) Fire sales;a bank panic
D) The shadow banking system;agency theory

Correct Answer:

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