During recessions, the value of collateral decreases and corporate profits decrease, so firms do not have cash to finance new investment projects. Therefore, credit rationing depends on the state of the economy. This situation is known as the
A) risk acceptance cost.
B) lender's dilemma.
C) default premium.
D) financial accelerator.
Question 2
There are several competing models of the business cycle because
A) none currently captures all facets of the business cycle.
B) they are all rooted in different philosophical traditions.
C) different shocks need different models.
D) they depend on the type of policy that is adopted.
(a) Longevity decreases with increased horn-length breeding value of harvested rams. (b) Mean-weight
Firms Incorporated into U.S. Steel
Cereal production in Africa may decrease by as much as 50% by 2080 in some areas
Excessive video gaming decrease social and physical development in a child
Economic objectives of firms
Introduction to Corporate Finance, 5th