(Last Word) Based on economic theory and research on tuition costs and student borrowing, the best way to reduce tuition costs for students would be to

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Quizplus · Accepted Answer

Economic theory suggests that when demand exceeds supply, prices increase. Therefore, by subsidizing higher education to increase the supply, there will be more schools and universities to choose from, which will create competition and ultimately lower tuition costs. This approach can also avoid the unintended consequences of option A, which may lead to moral hazards and default risks, as well as option B, by preventing schools from charging the optimal tuition price. Option D can help alleviate the financial burden on students, but it does not address the root cause of tuition inflation.

(Last Word) Based on Economic Theory and Research on Tuition