a). Under what condition do we say a financial market is efficient? Distinguish between weak and semi-strong form efficiency. b). Explain any five (5) ways a company can raise equity capital in the financial market. c). One of the ways in which the government can finance its fiscal deficit is to borrow funds through the domestic loanable fund market. Explain how this deficit financing strategy of the government can crowd out the domestic private sector and increase interest rate.

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter31: The Impacts Of Government Borrowing
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a). Under what condition do we say a financial market is efficient? Distinguish between weak and semi-strong form efficiency. b). Explain any five (5) ways a company can raise equity capital in the financial market. c). One of the ways in which the government can finance its fiscal deficit is to borrow funds through the domestic loanable fund market. Explain how this deficit financing strategy of the government can crowd out the domestic private sector and increase interest rate.
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