Lower financing costs (interest rates)
A) Encourage businesses to invest more and demand more funds
B) Encourage surplus units to supply more funds to deficit units
C) Encourage businesses to invest less and demand fewer funds
D) All of the above
Correct Answer:
Verified
Q2: Households
A) Are dis-savers in their early and
Q3: Businesses
A) Are deficit units because the profit-maximizing
Q4: State and local governments
A) Are chronic deficit
Q5: Commercial banks
A) Are surplus units
B) Are deficit
Q6: For the United States, the external sector
Q7: If funds supplied by surplus units exceeded
Q9: Which of the following is characteristic of
Q10: In a competitive financial system
A) Surplus funds
Q11: If government spending were to increase and
Q12: An effective financial system
A) Reallocates risk toward
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