Diversification can reduce firm-specific risk

During the financial crisis in 2007 and 2008, financial institutions believed that default risks were higher. As a result, there was ________ in the supply of loanable funds and a ________ in the real interest rate

A) a decrease; fall B) an increase; rise C) an increase; fall D) a decrease; rise

Dominant strategies are often difficult to take because a better alternative could exist

Indicate whether the statement is true or false