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    Macroeconomics Study Set 69
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    Exam 18: Open-Economy Macroeconomics: Basic Concepts
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    Explain How Tight Credit Markets (Credit Crunches) Affect
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Explain How Tight Credit Markets (Credit Crunches) Affect

Question 4

Question 4

Essay

Explain how tight credit markets (credit crunches) affect:
a.business fixed investment, b.residential investment, and c.inventory investment.

Correct Answer:

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a. Firms that face financing constraints...

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