During recessions, the value of collateral decreases and corporate profits decrease, so firms do not have cash to finance new investment projects. Therefore, credit rationing depends on the state of the economy. This situation is known as the
A) risk acceptance cost.
B) lender's dilemma.
C) default premium.
D) financial accelerator.
Question 2
There are several competing models of the business cycle because
A) none currently captures all facets of the business cycle.
B) they are all rooted in different philosophical traditions.
C) different shocks need different models.
D) they depend on the type of policy that is adopted.
Water potentials decrease (become more negative) as one moves from soil to plant to atmosphere
Rhytidoplasty. This is a common form of plastic surgery in which the skin is pulled and sutured to d
In 1900, Ashcan artist George Luks portrayed corporate monopolies and franchises as a monster preyin
United States, southwestern and southern states are suffer from a significant decrease in rainfall
Cereal production in Africa may decrease by as much as 50% by 2080 in some areas
Economic objectives of firms