Households affected by a "liquidity constraint" have consumption ________ sensitive to changes in current income that is predicted by the LCH, and a saving ratio that may not ________ in a recession
A) less, rise
B) less, fall
C) more, rise
D) more, fall
D
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American businesses get their external funds primarily from
A) bank loans. B) bonds and commercial paper issues. C) stock issues. D) loans from nonbank financial intermediaries.
Competition promotes the _____ ---- of resources and provides the _____ for innovative improvements
Fill in the blank(s) with the appropriate word(s).
If good A is an inferior good, an increase in income leads to:
A. a decrease in the demand for good B. B. no change in the quantity demanded of good A. C. a decrease in the demand for good A. D. an increase in the demand for good A.
In effect, tariffs on imports are:
A. special taxes on domestic producers. B. subsidies to domestic consumers. C. subsidies to foreign producers. D. subsidies for domestic producers.