The notion that lenders must select from a pool of bad credit ...

[sam.t96]

The notion that lenders must select from a pool of bad credit risks, because the most undesirable borrowers are those that most actively seek out a loan is known as the ________.
 
  A) moral hazard problem
  B) ornamental torsion problem
  C) adverse selection problem
  D) asymmetric innovation problem

Question 2

Through its impact on the desired stock of housing, higher expected income would lead to ________.
 
  A) an increase in residential investment
  B) a decrease in expected house price appreciation
  C) a decrease in residential investment
  D) a decrease in single-family dwellings

[aloop]

Answer to Question 1

C

Answer to Question 2

A

[sam.t96]

Excellent

[softEldritch]

Gracias!