A decrease in "financial frictions" is associated with ________

A) a decrease in the credit spread
B) more efficient functioning of financial markets
C) reduced real cost of borrowing for businesses
D) an increase in planned investment spending
E) all of the above

E

Economics

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Jane is a top-level executive earning a high salary. Jane has just ordered a luxury car only to be told that she will have to wait three weeks for it to be delivered. Which of the following statements is TRUE?

A) The car is not a scarce good. B) The car is an economic good. C) The car is human capital. D) The car is an intangible good.

Economics

An external benefit is a benefit from an activity that falls on a third party who is not a party to the activity

a. True b. False

Economics