In the basic AD-SRAS model, the assumption is made that
A) bank loans are imperfect substitutes for other forms of finance.
B) all sources of finance are perfect substitutes.
C) the real interest rate overstates the cost of funds to borrowers.
D) the real interest rate understates the cost of funds to borrowers.
Correct Answer:
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Q1: Why are savers often unwise in lending
Q2: Large firms find external funds to be
Q4: A favorable shock to productivity may raise
Q5: Why are banks able to offer funds
Q6: As a result of asymmetric information
A)small firms
Q7: A majority of lending from savers to
Q8: Economists have found that the greater is
Q9: For large firms economists have found that
A)internal
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Q11: In which of the following years did
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