Which of the following statements is true?
A) Larger loans are likely to be cheaper to process (per dollar) than smaller loans; therefore, larger loans will carry a lower interest rate than smaller loans, ceteris paribus.
B) Larger loans are likely to be more expensive to process (per dollar) than smaller loans; therefore, larger loans will carry a higher interest rate than smaller loans, ceteris paribus.
C) Larger loans are likely to be cheaper to process (per dollar) than smaller loans; therefore, larger loans will carry a higher interest rate than smaller loans, ceteris paribus.
D) Larger loans are likely to be more expensive to process (per dollar) than smaller loans; therefore, larger loans will carry a lower interest rate than smaller loans, ceteris paribus.
Correct Answer:
Verified
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