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Author Question: The practice of borrowing short and lending long A) pools risk. B) minimizes the cost of ... (Read 181 times)

CharlieWard

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on: Jun 29, 2018
The practice of borrowing short and lending long
 
  A) pools risk.
  B) minimizes the cost of monitoring borrowers.
  C) creates liquidity.
  D) All of the above answers are correct.

Question 2

If the government's budget deficit increases and the Ricardo-Barro effect does not apply
 
  A) the real interest rate rises.
  B) investment increases.
  C) investment decreases.
  D) Both answers A and C are correct.


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iceage

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

D


CharlieWard

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  • Posts: 578
Reply 2 on: Jun 29, 2018
Excellent

Perkypinki

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  • Posts: 339
Reply 3 on: Yesterday
Great answer, keep it coming :)

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