A debt contract is said to be incentive compatible if:______. a. the borrower's net worth reduces the probability of moral hazard. b. restrictive covenants limit the type of activities that can be undertaken

A debt contract is said to be incentive compatible if:______.

a. the borrower's net worth reduces the probability of moral hazard.
b. restrictive covenants limit the type of activities that can be undertaken by the borrower.
c. both the A or B of the above occur.
d. neither A nor B of the above occur.

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A debt contract is said to be incentive compatible if:______. a. the borrower's net worth reduces the probability of moral hazard. b. restrictive covenants limit the type o…

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