« previous next »

Author Question: Based on the neoclassical theory of investment, which aspect of a booming economy helps to explain ... (Read 61 times)

shofmannx20

  • Hero Member
  • *****
  • Posts: 562
on: Jun 30, 2018
Based on the neoclassical theory of investment, which aspect of a booming economy helps to explain the procyclicality of investment?
 
  A) Tax revenues are likely to be rising.
  B) The real interest rate is likely to be rising.
  C) Capital goods are becoming more expensive.
  D) Financing constraints are likely to be relaxed for many businesses.

Question 2

A current account deficit is
 
  A) good because a country wants to own the others.
  B) bad because every country should have a surplus.
  C) good because it allows to smooth consumption.
  D) it does not matter.


ghepp

  • Sr. Member
  • ****
  • Posts: 361
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Habitat reconstruction is possible based on the kinds of plants present at past sites. Habitat reconstruction is possible based on the kinds of plants present at past sites.
The Systems in Bronfenbrenner’s Ecological Theory The Systems in Bronfenbrenner’s Ecological Theory
International Television Viewing Rates in Childhood In most developed countries, children watch TV International Television Viewing Rates in Childhood In most developed countries, children watch TV
Contact theory indicates that prejudice decreases and relations improve when individuals of ... Contact theory indicates that prejudice decreases and relations improve when individuals of ...
Big Bang Theory Big Bang Theory
The four identity statuses proposed by Marcia, based on Erikson's theory The four identity statuses proposed by Marcia, based on Erikson's theory
Video: Acid-base imbalances - respiratory acidosis and alkalosis

For a complete list of videos, visit our video library