Credit rationing and the financial accelerator are responsible, in part, for
A) the significant volatility of gross private investment.
B) the significant volatility of real personal consumption.
C) smoothing gross private investment during severe recessions.
D) smoothing real personal consumption during expansions.
A
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The key assumption underlying the theory of the firm is that:
A) firms are assumed to maximize sales revenue. B) managers are assumed to maximize the number of employees in their department. C) firms are assumed to maximize profits. D) none of the above
If someone you know offers far more to hire you to work for than you could ever have imagine, the opportunity cost of working for yourself would rise
a. True b. False Indicate whether the statement is true or false
When oligopolistic firms in an industry form a cartel, then it is most likely that
A) both industry output and prices will increase. B) both industry output and prices will decrease. C) industry output will increase while prices will decrease. D) industry output will decrease while prices will increase.
Suppose a monopolist has TC = 40 + 10Q + Q2, and the demand curve it faces is p = 130 - 2Q. What is the maximum profit achieved by this monopoly?
A) Profit = 1160 B) Profit = 1240 C) Profit = 1450 D) Profit = 1800