An increase in financial frictions results in ________
A) an increase in output and inflation
B) a rise in the interest rate set by monetary policy
C) a decline in the real interest rates faced by households and firms
D) a decline in the interest rate set by monetary policy
D
You might also like to view...
One thing economists do to help them understand how the real world works is
a. make assumptions. b. ignore the past. c. try to capture every aspect of the real world in the models they construct. d. All of the above are correct.
To engage in first-degree price discrimination, a firm must:
A. know each consumer's maximum willingness to pay. B. be able to set P > MC. C. prevent low-value consumers from reselling to high-value consumers. D. All of the answers are correct.
Based on the diagram below, which of the following statements is true?
A. Average total cost at Q2 is the slope of line 0A
B. Average total cost at Q1 is the slope of line AB
C. Marginal cost at Q2 is the slope of line CB
D. Marginal cost at Q1 is the slope of line 0A
Refer to the below table. What percentage should be reported in blank A of column 2?
A. 5
B. 6
C. 12
D. 17