The United States is academically unique in having so many

When the economy is in a recession, it

a. needs firms and people to borrow but few take advantage of the banking systems'willingness to loan at low interest rates b. needs firms and people to borrow but few take advantage of the banking systems' willingness to loan because interest rates are typically high in recession c. does not need firms and people to borrow from the banking system because firms and people are already earning less revenue because of the recession d. needs people to save more so that banks will have greater deposits and could lend out more e. reflects the fact that banks are typically loaned out and cannot finance further investment, which is part of the recession's problem

If the legal and regulatory environment fails to protect property rights and is often used to favor some at the expense of others, which of the following is most likely to be encouraged?

a. productive activities b. a high rate of investment c. rent-seeking and unproductive activities d. competitive markets