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Why is a financial crisis likely to lead to a contraction in economic activity?
A. Those that borrow funds to finance productive investment opportunities will have a greater opportunity to obtain financing.
B. Disruptions in the financial system decreases asymmetric? information, thereby decreasing the associated problems of adverse selection and moral hazard.
C. A disruption in the financial system diminishes the flow of funds from savers to borrowers.
D. None of the above are correct
All of the following are considered input barriers to entry except:
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Prices the selling monopoly charges for TV sets in periods 1 and 2.
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Which industry would be the best example of an oligopoly?
(Figure: Corn and Watches in the United States and Canada) Referring to the graphs, we see that _____ has the comparative advantage for corn and _____ has the comparative advantage for watches.
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Can a country have (true or false each of the below and explain): A current account surplus, a capital accounts surplus, and a fixed exchange rate - why or why not? A current account surplus, a capital account surplus, and a flexible exchange - why o..
"Which side of the market, supply or demand, that bears the burden of a tax on a good or service depends upon the relative supply and demand:"
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