The commercial paper market was an important ingredient of the Great Recession because:
a. It is the market on which mortgages are financed, and, due to the Great Recession, this market dried up.
b. It is the market on which many companies finance their daily working capital needs and, due to the Great Recession, this market dried up.
c. The commercial paper market was the only financing source open to companies during the great recession.
d. All of the above.
Question 2
If the price of inputs rises and foreign income rises:
a. Price index falls, and real GDP falls.
b. Price index falls, and the change in real GDP is uncertain.
c. The change in price index is uncertain, and real GDP rises.
d. Neither the price index nor real GDP changes.
e. Price index rises, and the change in real GDP is uncertain.
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