What do many economists see finance companies as having an advantage in?
A) purchasing commercial paper
B) selling long-term securities
C) monitoring the value of collateral
D) charging consumers particularly low interest rates
C
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The Consumer Price Index (CPI) differs from a chain-weighted price index in that the CPI
A) compares the prices of all goods in one year to the prices of all goods in other years. B) measures the costs of a typical fixed basket of goods over time, while the chain-weighted index does not. C) requires calculation of GDP, while the chain-weighted index does not. D) allows for the goods consumed in an economy to change over time, while the chain-weighted index does not.
Which of the following is correct?
a. A period of hyperinflation is a period of extraordinarily low inflation. b. A period of deflation is any period during which the inflation rate is decreasing. c. In the 1970s, U.S. inflation averaged about 7.8 percent per year d. All of the above are correct.