Loan guarantees provided by government will reduce the willingness of investors to take on the risk in a project.

Name: Loan guarantees provided by government will reduce the willingness of investors to take on the risk in a project.
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Question

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Loan guarantees by the government typically increase investors' willingness to take on risk, as they reduce potential losses by ensuring that the government will cover some or all of the losses if the project fails.

Loan Guarantees Provided by Government Will Reduce the Willingness of Investors