Which of the following will occur if aggregate demand is below full-employment GDP?
A. Recession
B. Excessive aggregate demand
C. Inflation
D. A stable economy
A. Recession
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In an open economy, aggregate supply consists of domestic production
A. plus imports. B. plus exports. C. minus imports. D. minus exports.
Prior to the establishment of the Federal Reserve System (1913), reserve requirements
(a) limited the banks' ability to lend. (b) did not restrict the amount of paper-money issued by banks. (c) freed banks to create as much money as the market could bear without regard for risk and withdrawal rates. (d) forced banks to place deposits in the national bank.
Signaling is when someone takes action to:
A. reveal private information about someone else. B. reveal one's own private information. C. find out the opportunity cost of acquiring more information. D. None of these statements is true.
The practice of packaging individual debts into a single uniform asset that can be easily bought and sold is called:
A. leveraging. B. securitization. C. federally-backed financing. D. bundled risk.