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Because of the adverse selection problem: O A. lenders will write debt contracts that restrict certain activities of borrowers O B. bad credit risks with
Because of the adverse selection problem: O A. lenders will write debt contracts that restrict certain activities of borrowers O B. bad credit risks with a willingness to pay higher interest rates will be the majority seeking loans O C. good credit risks are more likely to seek loans, causing lenders to make a disproportionate number of loans to good credit risks O D. lenders may refuse loans to individuals with high net worth because of their greater proclivity to 'skip town
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