If investment in an economy falls, which of the following is likely to happen?
A) Labor demand will increase. B) The revenue of firms in the economy will fall.
C) Asset prices will rise. D) The number of mortgage defaults will fall.
B
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An increase in the U.S. GDP will result in
A. an increase in exports of the United States. B. an increase in imports of the United States. C. an increase in the dollar exchange rate and a decrease in imports of the United States. D. an increase in the dollar exchange rate and a rise in imports of the United States.
During times of financial crisis, mark-to-market accounting
A) requires that a financial firms' assets be marked down in value which can worsen the lending crisis. B) leads to an increase in the financial firms' balance sheets since they can now get assets at bargain prices. C) leads to an increase in financial firms' lending. D) results in financial firms' assets increasing in value.