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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

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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

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