How are banks and venture capital firms different?

A. Banks are financial intermediaries.
B. Banks receive funds from the suppliers of capital.
C. Venture capital firms expect quite a few of their investments to fail.
D. Venture capital firms provide funds to businesses.


Answer: C

Economics

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A reduction in business expectations, combined with the imposition of new tariffs by major trading partners, would have what effect on aggregate demand? a. AD would increase

b. AD would decrease. c. AD would stay the same. d. AD could either increase or decrease, depending on which change was of a greater magnitude.

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Suppose the price elasticity of demand for a product is 0.5 . If a supplier wants to increase revenue, what change should it make to price, if any?

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Where do constraints come from?

What will be an ideal response?

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A key component of the Keynesian model is that

A. prices are flexible. B. wages are flexible. C. people are not fooled by money illusion. D. prices are sticky.

Economics