When financial intermediaries deleverage, firms cannot fund investment opportunities resulting in
A) a contraction of economic activity.
B) an economic boom.
C) an increased opportunity for growth.
D) a call for government regulation.
A
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MVA (Market Value Added)
A) will always be a positive number. B) may be a negative number. C) measures the market value of the firm. D) None of the above
The three curves in the above figure are
A) (1 ) the long-run aggregate supply curve, (2 ) the aggregate demand curve, and (3 ) the short-run aggregate supply curve. B) (1 ) the long-run aggregate supply curve, (2 ) the short-run aggregate supply curve, and (3 ) the aggregate demand curve. C) (1 ) the short-run aggregate supply curve, (2 ) the aggregate demand curve, and (3 ) the long-run aggregate supply curve. D) (1 ) the aggregate supply curve, (2 ) the short-run aggregate demand curve, and (3 ) the long-run aggregate demand curve.