Question: A collateral shock refers to a reduction in: A.interest rates so that it is less costly to borrow. B.the value of collateral so that borrowing

A collateral shock refers to a reduction in:

A.interest rates so that it is less costly to borrow.

B.the value of collateral so that borrowing becomes more difficult.

C.the effect of a negative shock on the damage of businesses.

D.collateral requirements so that borrowing becomes easier

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