Central bank lending to bail out troubled firms is known as ________, while allowing troubled firms to conceal the true value of their assets is called ________.
A) crony capitalism; larceny
B) liquidity provision; regulatory forbearance
C) securitization; nonconventional monetary policy
D) subprime lending; regulatory arbitrage
Question 2
At the end of the future period, in the real intertemporal model with investment
A) the firm's capital becomes useless and is thrown away.
B) the firm's capital is used to produce more capital for the distant future.
C) the firm can convert capital one-for-one into consumption goods.
D) the firm's capital is converted into labor.
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