A decrease in "financial frictions" is associated with ________
A) a decrease in the credit spread
B) more efficient functioning of financial markets
C) reduced real cost of borrowing for businesses
D) an increase in planned investment spending
E) all of the above
E
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The potential for profit-increasing false advertising is greatest for which of the following goods?
A) deodorant B) toilet paper C) paper towels D) a home water heater
A large timber farm supplies large building contractors with plywood and stick lumber. The managers of the timber farm have noticed that the demand for their timber tends to fluctuate with long-term business cycles and short-term changes in their timber production lead to sharp increases in their marginal cost. With this information, it is likely that ________-term forecasts are more valuable to
the managers of the timber farm and the cost of ________-term forecasts are likely to exceed their benefit. A) short; extended B) short; long C) long; short D) long; extend
According to the benefits principle, it is fair for people to pay taxes based on their ability to shoulder the tax burden
a. True b. False Indicate whether the statement is true or false
The main function of the Federal Reserve System is to:
Control the money supply Clear checks from member banks Serve as the fiscal agent for the Federal government Set reserve requirements of banks