Author Question: Financial innovations may be expected to cause a decline in ________. A) financial frictions B) ... (Read 43 times)

rayancarla1 · **on:** Jun 30, 2018

Financial innovations may be expected to cause a decline in ________.

A) financial frictions
B) the credit spread
C) the real interest rate on investments
D) all of the above
E) none of the above

Question 2

The Ricardian Equivalence holds only if

A) the government is altruistic.
B) there are no binding credit constraints.
C) the government runs deficits.
D) the government runs surpluses.