Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which of the following statements is false? Stiglitz and Weiss argue that as interest rates increase, investors with safe projects are more likely to exit
Which of the following statements is false? Stiglitz and Weiss argue that as interest rates increase, investors with safe projects are more likely to exit the credit market than investors with risky projects. Stiglitz and Weiss argue that credit rationing occurs as a temporary phenomenon and is eliminated once markets have had time to adjust. Stiglitz and Weiss argue that due to limited liability, banks make losses on loans when firms that receive loans are unable to repay. None of the above. Question 4 1 pts Which of the following statements is false? Rajan and Zingales measure the financial development of an industry by using the ratio of credit to GDP. Rajan and Zingales find that industries that rely more on external finance tend to grow more rapidly in countries that are more financially developed. Rajan and Zingales do not show that more developed credit markets lead to faster economic growth. None of the above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started