Based on the article "Are Higher Capital Requirements Worth It?": a. What factors help to determine the optimal capital/asset ratio from the bank manager's perspective? How might the optimal amount of capital differ from other private nonfinancial firms? b. Why might banks use more debt financing than equity financing? What role does deposit insurance play in this issue? c. Will the bank's optimal capital ratio be the same as the regulator's? Why or why not? d. According to the authors, describe how increasing capital requirements can affect the economy. That is, what are the three main channels by which these capital regulations impact the economy? What do the authors find in their empirical research regarding the effect of higher capital requirements on the economy?