If changes in monetary policy are going to help stabilize the economy, they must
What will be an ideal response?
be properly timed.
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A venture capital fund buys the __________ of a new company and hopes to profit from __________
A) debt; repayment of the debt at maturity B) debt; interest payments on that debt C) equity; dividends from the equity D) equity; eventual sale of that equity
Other things the same, if workers and firms expected inflation to be 2%, but it is only 1% then
a. employment and production rise. b. employment rises and production falls. c. employment falls and production rises. d. employment and production fall.
Small businesses that operate outside the normal framework of laws and regulations are part of the
a. informal sector b. capital intensive sector c. International Comparison Project d. human capital network e. none of the above
Residential investment plunged quite noticeably ________ the start of the 1973-1975 and 1981-1982 recessions, with the prospect that recent financial deregulation would make it ________ sensitive to future changes in monetary policy
A) after, more B) after, less C) before, more D) before, less