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    Macroeconomics Study Set 39
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    Exam 17: The Theory of Investment
  5. Question
    Explain How Tight Credit Markets (Credit Crunches) Affect: A
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Explain How Tight Credit Markets (Credit Crunches) Affect: A

Question 13

Question 13

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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