An example of a government-based approach to improve the quality of information in financial markets is ________
A) financial news networks
B) mandatory disclosures
C) government-directed credit
D) government safety nets
B
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From an efficiency standpoint, one must compare the excess burdens of tax and debt finance.
A. True B. False C. Uncertain
If a firm is operating at an output level where losses are minimized the firm
A) has no incentive to stay in the industry. B) is better of exiting the industry. C) is maximizing profits. D) will shut down
If the production of a product results in significant external costs, an appropriate government policy might be to
A) subsidize the production of the good. B) tax producers and thus shift the supply curve to the left. C) tax consumers' incomes and thus shift the demand curve to the left. D) subsidize consumers since the good is being under-consumed.
Suppose in an economy, investment = $40, saving = $50, government spending+export = $100 and taxes+imports = $110 . Then for this economy, total leakages exceed total injections by:
a. $30. b. $25. c. $10. d. $45. e. $20.