How does the existence of liquidity constraints affect the volatility of investment? Why might liquidity constraints be

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How does the existence of liquidity constraints affect the volatility of investment? Why might liquidity constraints be more binding on smaller firms than on larger ones and on U.S. firms than on firms in such countries as Germany and Japan?

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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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Question Posted: Dec 09, 2015 03:25 AM

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How does the existence of liquidity constraints affect the volatility of investment? Why might liquidity constraints be

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Liquidity constraints make investment more volatile because they impede the abi...View the full answer

Macroeconomics

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