To combat the financial crisis and recession which began in 2007, governments worldwide made it:

A. easier for firms and households to borrow money for investment and consumer goods.
B. easier for other countries to borrow money for infrastructure projects.
C. easier for firms to pay their taxes by providing a tax amnesty.
D. easier for workers to purchase health insurance through their employers.


Answer: A

Economics

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The number of firms in a monopolistically competitive market means that

A. each firm has a relatively small share of the total market since there are many firms in the industry. B. the firms will be likely to collude since there are only a few firms in the industry. C. all firms will have substantial monopoly power since there are so few firms in the industry. D. firms will have a hard time earning non-negative profits since there are many firms in the industry.

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Answer the following statement true (T) or false (F)

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Which of the following will increase macroeconomic equilibrium prices?

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