Author Question: During business contractions, the growth rate of Solow residuals is ________. A) near or below ... (Read 55 times)

crobinson2013 · **on:** Jun 30, 2018

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