A sharp stock market decline increases moral hazard incentives: A) since borrowing firms have less to lose
Fantastic news! We've Found the answer you've been seeking!
Question:
A sharp stock market decline increases moral hazard incentives:
A) since borrowing firms have less to lose if their investments fail.
B) because it is immoral to profit from someone's loss.
C) since lenders are more willing to make loans.
D) reducing uncertainty in the economy and increasing market efficiency.
Expert Answer:
Posted Date:
