Financial innovations may be expected to cause a decline in ________
A) financial frictions
B) the credit spread
C) the real interest rate on investments
D) all of the above
E) none of the above
D
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Expansionary monetary policy will
a. often raise real interest rates in the short run. b. generally reduce aggregate demand in the short run. c. lead to higher nominal interest rates if the expansionary policy persists over a lengthy time period. d. lead to a rapid growth of real GDP if the expansionary policy persists over a lengthy time period.
Refer to the table below. With the addition of the second unit of input, the marginal product is:
The question is based on the following table that provides information on the production of a product that requires one variable input.
A. 15 and the average product is 20
B. 25 and the average product is 10
C. 15 and the average product is 10
D. 10 and the average product is 15