[70 pts] Credit a. [10 pts] Explain why low-income households have limited liability in credit markets b. [5 pts] Name two important consequences that result from limited liability and asymmetric information in the credit market c. [5 pts] Using the two terms you listed in part b above, categorize the following as being examples of either one, the other, or neither: i. Choosing a high value, but risky agricultural project ii. Only individuals wanting to invest on projects that offer high reward, but low probability of success are the ones seeking loans iii. Planting diversified crops that will succeed in many types of weather iv. Using credit to plant crops in low-lying flood-prone land (i.e., very likely to lose the crop) v. Taking credit to smooth consumption after an income shock d. [10 pts] Describe what feature of microfinance overcomes the two challenges you listed in part b above and how it achieves this result