Question
In the model with asymmetric information in the credit market, a decrease in the fraction of bad borrowers in the population reduces the interest rate
In the model with asymmetric information in the credit market, a decrease in the fraction of bad borrowers in the population
| reduces the interest rate spread. | ||
| increases the default premium. | ||
| hurts good borrowers. | ||
| causes banks to earn negative profits. |
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Financial Literacy And The Limits Of Financial Decision Making
Authors: Tina Harrison
1st Edition
3319308858,3319308866
