Which of the following is an example of the way the financial markets in the United States can encourage technological progress more efficiently than other countries?
A) The level of legal protection for investors in the United States is relatively low.
B) Banks in the United States are more willing to take on risk because the government guarantees each bank cannot lose more than 100,000 on any given loan that defaults.
C) Because the financial market in the United States is so large, the quantity of trading in corporate stocks and bonds makes those investments less liquid.
D) Even when entrepreneurs cannot secure sufficient funding for projects from banks, venture capital firms may be willing to lend money.
Question 2
The multiplier effect refers to the series of
A) induced increases in consumption spending that result from an initial increase in autonomous expenditures.
B) autonomous increases in consumption spending that result from an initial increase in induced expenditures.
C) induced increases in investment spending that result from an initial increase in autonomous expenditures.
D) autonomous increases in investment spending that result from an initial increase in induced expenditures.
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