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20-2 Business Loan A colleague tells you that he can get a business loan from the bank, but the rates seem very high for what

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20-2 Business Loan A colleague tells you that he can get a business loan from the bank, but the rates seem very high for what your colleague considers a low- risk loan. Give an adverse selection explanation for this, and offer advice to your friend on how to solve the problem. Give a moral hazard explanation for this, and offer advice to your friend on how to solve the

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