You are given a background paragraph that describes one or more causal or qualitative relationships such as a relationship in economics or a scientific law and a story that makes use of the concepts or the relationship described in the provided paragraph. You are also given a question about the story that requires an understanding of the relationship described in the background paragraph and the story. You need to come up with an answer to the given question; the answer will be a span from either the question or the story. In order to correctly answer the given question, you need to understand the relationship mentioned in the background paragraph and should be able to use it to understand that in the story. Your answer can not consist of any word that is not mentioned in any of these: the background paragraph, the story, or the question. You can directly copy and paste a span from the story or the question while answering the given question.

[EX Q]: Background Paragraph: The trade-off theory of capital structure is the idea that a company chooses how much debt finance and how much equity finance to use by balancing the costs and benefits. The classical version of the hypothesis goes back to Kraus and Litzenberger[1] who considered a balance between the dead-weight costs of bankruptcy and the tax saving benefits of debt. Often agency costs are also included in the balance. This theory is often set up as a competitor theory to the pecking order theory of capital structure. A review of the literature is provided by Frank and Goyal.[2]

An important purpose of the theory is to explain the fact that corporations usually are financed partly with debt and partly with equity. It states that there is an advantage to financing with debt, the tax benefits of debt and there is a cost of financing with debt, the costs of financial distress including bankruptcy costs of debt and non-bankruptcy costs (e.g. staff leaving, suppliers demanding disadvantageous payment terms, bondholder/stockholder infighting, etc.). The marginal benefit of further increases in debt declines as debt increases, while the marginal cost increases, so that a firm that is optimizing its overall value will focus on this trade-off when choosing how much debt and equity to use for financing. 
Story: Company X stopped taking on more debt, and decided to file for bankruptcy, while company Y, kept benefiting from the tax benefits of debt, having a lower debt level. 
Question: Which company had more costs than benefits related to debt, company X or company Y?
[EX A]: company X.

[EX Q]: Background Paragraph: The water level is seasonal, being lowered by about 10 feet (3.0 m) over the winter. The reservoir fills in the spring from snow melt and underground springs. The lake is usually at full level by late spring, but in the occasional years of low snow melt and low rainfall, it may remain up to several feet below its typical level. Water is let out of the lake in the fall so that ice will not damage docks and other structures around the lake. This also leads to excellent water quality, as a significant portion of the water is replaced every year. 
Story: Bob has been wanting to go on vacation to the nearest lake in his area. He prefers to go to the lake when it is at it's highest level. He doesn't want to go during the summer, and has decided he must choose between the fall, and the spring for the best temperatures. 
Question: Will the fall or the spring more than likely have a lower water level?
[EX A]: fall.

[EX Q]: Background Paragraph: Huge amounts of chemicals, such as fertilizers and pesticides, are applied to farm fields (see Figure below ). Some of the chemicals are picked up by rainwater. Runoff then carries the chemicals to nearby rivers or lakes. Dissolved fertilizer causes too much growth of water plants and algae. This can lead to dead zones where nothing can live in lakes and at the mouths of rivers. Some of the chemicals can infiltrate into groundwater. The contaminated water comes up in water wells. If people drink the polluted water, they may get sick. 
Story: Lucy and Sarah are two people who each own a lake that they enjoy spending time at. They have to take care of the lake though and make sure everything is healthy so that the lake can continue to thrive and people will want to visit it. Sarah says she heard a secret that if you dump fertilizer into your lake, the fish will grow twice as large. Sarah says she has just started doing it this past week and can't wait to see the results. Lucy is skeptical and waits to see what happens at Sarah's lake. 
Question: Will Lucy or Sarah have a lake with less plants in it?
[EX A]:
Lucy.