Higher expected profits and business confidence ________ investment spending

The two types of financial systems tend to treat

A) small firms alike. B) large firms alike. C) both small and large firms alike. D) neither small nor large firms alike.

The Federal Reserve ________

A) engages in stabilization policy by setting interest rates B) engages in fiscal policy by setting interest rates C) addresses financial crises by raising taxes D) all of the above E) none of the above