The Great Recession of 2008-09 was an ideal case for fiscal policy because:
A. a healthy financial sector improves the timeliness of expansionary fiscal policy.
B. targeting and timeliness are less important when a recession is the result of the bursting of an asset bubble.
C. the most-easy-to-target sectors were those that were the most affected by unemployment.
D. targeting and timeliness are less important when a recession is very severe and lasts a long time.
Answer: D. targeting and timeliness are less important when a recession is very severe and lasts a long time.
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If a firm is in an antitrust court case being accused of monopolizing a product, the firm would hire an economist to show
A) the cross-price elasticity of demand between the firm's good and another is positive. B) the price elasticity of demand for the firm's good is highly inelastic. C) the income elasticity of the firm's good is inferior. D) the cross-price elasticity of demand between the firm's good and another is negative.
How can a partnership raise funds needed for firm expansion?
What will be an ideal response?