When capital is used as a screening device in conjunction with interest rate, a high risk borrower chooses a contract with__________ , while a low risk borrower chooses the one with_______ .
A)high capital-high interest rate, low capital-low interest rate
B)low capital-low interest rate, high capital-high interest rate
C)high capital-low interest rate, low capital-high interest rate
D)low capital-high interest rate, low capital-low interest rate
E)low capital-low interest rate, high capital-low interest rate

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The Answer of When capital is used as a screening device in conjunction with interest rate, a high risk borrower chooses a contract with__________ , while a low risk borrower chooses the one with_______ .
A)high capital-high interest rate, low capital-low interest rate
B)low capital-low interest rate, high capital-high interest rate
C)high capital-low interest rate, low capital-high interest rate
D)low capital-high interest rate, low capital-low interest rate
E)low capital-low interest rate, high capital-low interest rate

When Capital Is Used as a Screening Device in Conjunction