Are the following two statements both true or is only one of them true? Justify your answer.

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S1. The bank lending rate will increase the riskier loans are perceived to be.

S2. Given $\mathrm{S} 1$, the more risk that banks can tolerate, the higher the bank lending rate will be.

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Macroeconomics Institutions Instability And The Financial System

ISBN: 9780199655793

1st Edition

Authors: Wendy Carlin, David Soskice

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Question Posted: Jun 10, 2024 02:10 AM

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Are the following two statements both true or is only one of them true? Justify your answer.

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Macroeconomics Institutions Instability And The Financial System

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