Take the following as truth: As any semiconscious economics student could tell you, a higher rate would not signal that the loan in question is more deserving than another, but rather, the  that investors are being compensated for extra risk, leaving the marginal lender indifferent among the alternatives.
Then the following statement: "A higher loan rate means that investors are being compensated for extra risk." is true, false, or inconclusive?
Answer: True