Author Question: The notion that lenders must select from a pool of bad credit risks, because the most undesirable ... (Read 60 times)

sam.t96 · **on:** Jun 30, 2018

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