« previous next »

Author Question: During recessions, the value of collateral decreases and corporate profits decrease, so firms do not ... (Read 21 times)

lak

  • Hero Member
  • *****
  • Posts: 546
on: Jun 30, 2018
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.


fur

  • Sr. Member
  • ****
  • Posts: 309
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Atmospheric pressure decreases as altitude increases. Atmospheric pressure decreases as altitude increases.
Firms Incorporated into U.S. Steel Firms Incorporated into U.S. Steel
In 1900, Ashcan artist George Luks portrayed corporate monopolies and franchises as a monster preyin In 1900, Ashcan artist George Luks portrayed corporate monopolies and franchises as a monster preyin
The percentage of never-married men and women decreases with age, and by the age of 65, more than ... The percentage of never-married men and women decreases with age, and by the age of 65, more than ...
Excessive video gaming decrease social and physical development in a child Excessive video gaming decrease social and physical development in a child
Economic objectives of firms Economic objectives of firms
Video: Appendicitis Animation

For a complete list of videos, visit our video library