Economist Dr. Tran hypothesizes that small business loans extended to women entrepreneurs in low-income regions yield greater social returns — in measures such as child education and household nutrition — than equivalent loans extended to men, even when business outcomes are similar.
Which finding, if true, would most strongly support Dr. Tran's hypothesis?
- A
Small business loans are widely used in low-income regions.
- B
Some women face additional barriers to obtaining credit.
- C
Microfinance programs have grown in popularity since the 1990s.
- Dcheck_circle
In a study where men and women borrowers ran businesses with similar profits, children of women borrowers showed significantly larger gains in school attendance and dietary quality than children of men borrowers.
Explanation
A holds business outcomes constant and isolates household-level social returns, supporting Tran's specific hypothesis. B, C, and D are general background.