If the proportion of bad borrowers increases, A) the lending ...

[bobthebuilder]

If the proportion of bad borrowers increases,
 
  A) the lending interest rate increases.
  B) the lending interest rate decreases.
  C) the borrowing interest rate increases.
  D) the borrowing interest rate decreases.

Question 2

If the Friedman rule for long-term monetary policy were implemented, the result would be
 
  A) inflation.
  B) neither inflation nor deflation.
  C) deflation.
  D) hyperinflation.

[ndhahbi]

Answer to Question 1

C

Answer to Question 2

C

[bobthebuilder]

Great answer, keep it coming

[kishoreddi]

Excellent