Answer:
The correct answer is option E.
Explanation:
Financial frictions in the process of making transactions, it refers to the stickiness involved in the process of making transactions. It includes the time, money and efforts that are involved in gathering information and making a transaction.
Institutional reforms can help in reducing financial frictions. A decrease in financial frictions will make transactions easier.
It will help in increasing planned investment spending. The financial markets will be able to function more efficiently.
The cost of borrowing for business will decrease, this will increase investment expenditure.
The credit spread or difference between yields from a government bond and some other bond with the same maturity will decrease.
Form10-Q is the SEC filing form that accompanies quarterly financial report and might be what you are referring to.
Answer:
D) Higher taxes
Explanation:
By increasing the taxes and reducing the spending it will reduce the demand in the economy (the goverment spending will be lower wehile the indivbiduals will have less disposable income as taxes increase)
If the economy was healty enought will lead to economic growth and reduce inflationary pressures.
If the country face a high inflation and negative growth, would end up with lower income and higher unemployment. Thus damaging to the economy without solving the inflation problem.
