Multiple Choice
An increase in the default premium
A) raises the safe credit market interest rate.
B) lowers the real interest rate and firms invest more.
C) shifts the optimal investement schedule to the left.
D) shifts the optimal investement schedule to the right.
E) will prevent firms from defaulting on their loans.
Correct Answer:
Verified
Correct Answer:
Verified
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Q13: The firm will hire current labour until<br>A)
Q14: If firm-level asymmetric information becomes more severe,then<br>A)
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