If bankers have reason to feel optimistic about the future, they may become very eager to loan money. If insufficient regulations are in place, this could most likely cause what? Very little change in the short run, as higher interest rates will simply compensate A credit crunch, as riskier borrowers take out loans A higher percentage of loans in default, as riskier borrowers are attracted to easy loans A credit crunch, which will reduce household consumption and business investment spending, leading to a decline in real output