If bankers have reason to feel optimistic about the future, they may become very eager to loan money. If insufficient regulations are in place, this could most likely cause what?
A. A higher percentage of loans in default, as riskier borrowers are attracted to easy loans
B. A credit crunch, which will reduce household consumption and business investment spending, leading to a decline in real output
C. A credit crunch, as riskier borrowers take out loans