An article in the New York Times in mid-2012 noted, with the economy still struggling and new

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An article in the New York Times in mid-2012 noted, “with the economy still struggling and new regulations meant to eliminate bad lending, bank loans continue to lag.”

a. What does the article mean by “bad lending”?

b. Which types of firms might find it harder to receive loans if banks reduce “bad lending”?

Briefly explain.

c. What alternatives do the firms you identified in part (b) have for obtaining credit if they are unable to get bank loans?

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