During business contractions, the growth rate of Solow residuals ...

[crobinson2013]

During business contractions, the growth rate of Solow residuals is ________.
 
  A) near or below zero
  B) well above zero
  C) approaching infinity
  D) impossible to calculate

Question 2

Suppose you have money to lend, but will do so only if you are compensated for the risk of default. If you set a high interest rate on your loan, a likely consequence is that ________.
 
  A) safe borrowers will look elsewhere, and only risky borrowers will find your terms attractive
  B) risky borrowers will look elsewhere, so your money is more likely to go to a safe borrower
  C) competition from other lenders will force you to lower your interest rate
  D) you will be prosecuted for predatory lending

[scottmt]

Answer to Question 1

A

Answer to Question 2

A

[crobinson2013]

Thanks for the timely response, appreciate it

[emsimon14]

YES! Correct, THANKS for helping me on my review