Question

The _ the opportunity cost of an activity, the a person will do that activity. A. higher; less OB. higher, more OC. lower, le
was found to follow financialization of the real economy. A. Greater income inequality OB. A fall in investment spending in t
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Answer #1

1. The answer is option A- Higher, Less

Opportunity cost relates to what you need to give up in order to purchase what you want from other products or services. We generally imply the price of chance when economists use the term "price."

2. The answer is D- All of the above

Financialization in the following respects undermines the real economy. While finance can support real economy development' in the early phases,' growth is bad for' too much finance.' Market finance's increase promises greater yields, that is, more economic rents.

With increasing use of finance for speculation, debt-funded share buybacks, as well as direct "brownfield" and "portfolio" investments, buying current assets implies not generating fresh financial capacity. As a result, financialization has accelerated the' slow retreat' from offering credit for productive investment to finance short-term profit from unproductive investment speculation.

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