In addition to having a direct effect on increasing adverse selection problems, increases in interest rates also promote financial crises by ________ firms' and households' interest payments, thereby ________ their cash flow

A) increasing; increasing
B) increasing; decreasing
C) decreasing; increasing
D) decreasing; decreasing


B

Business

You might also like to view...

In a common-size income statement, net sales is represented by 100 percent

Indicate whether the statement is true or false

Business

Which of the following is an example of a digital report?

A) A report prepared as a PDF document B) A PowerPoint slide deck that is posted online C) A presentation using a cloud-based software solution such as Prezi or SlideRocket D) All of these choices are examples of digital reports.

Business

A tangible or electronic record that evidences both a monetary interest and security interest in or a lease of specific goods is known as:

a. a negotiable instrument. b. a document of title. c. a promissory note. d. chattel paper.

Business

The inference engine, also known as the control structure or the rule interpreter (in rule-based ES), is essentially a computer program that provides a methodology for reasoning about information in the knowledge base and on the blackboard to

formulate appropriate conclusions. Indicate whether the statement is true or false

Business