16. The process of deleveraging refers to A) cutbacks in lending by financial institutions. B) a reduction in debt owed by banks. C) both A and B. D) none of the above Adverse selection and moral hazard problems increased in magnitude during the early years of the Great Depression as A) stock prices declined to 10 percent of their levels in 1929. B) banks failed. C) the aggregate price level declined. D) a result of all of the above. E) a result of A and B of the above. 18. Approximately how large was the U.S. subprime mortgage market in 2007? A) $100 million B) $100 billion C) $500 billion D) $1 trillion