Author Question: Economists use the term financial markets to mean the markets in which A) households supply their ... (Read 117 times)

NguyenJ · **on:** Jun 29, 2018

Economists use the term financial markets to mean the markets in which

A) households supply their labor services.
B) the government borrows to fund any budget surplus.
C) firms supply their goods and services.
D) firms purchase their physical capital.
E) firms get the funds that they use to buy physical capital.

Question 2

Recall the Application. Greece faced a major financial crisis in 2010 as its budgetary imbalance became quite severe. Since Greece is a member of the Euro-zone, it could no longer ________ as a potential solution to its financial problems.

A) depreciate its currency B) raise taxes
C) reduce wages and prices D) cut spending