Fixing the insolvency problem caused by the Great Recession meant:
a. Rapidly increasing the U.S. money supply.
b. Relieving financial institutions of toxic assets and injecting new equity into them.
c.Changing banking rules so there was more financial competition.
d. Opening long-term financing sources, which would allow banks, companies, and the government to fund long-term needs, such as new branches, plants, and infrastructure (e.g., bridges and dams) needs.
.B
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The Phillips curve:
a. was relatively well-defined during the 1960s. b. demonstrates how to achieve stable economic growth. c. shows the trade-off between deficits and inflation. d. helps to stimulate entrepreneurial profits. e. becomes vertical at full employment.
A reduction in consumption spending due to the lay-off of 2,000 defense-industry workers?will ultimately have a larger overall impact on real GDP due to the multiplier effect
Indicate whether the statement is true or false
Investment in a broad portfolio of stocks is most attractive for
What will be an ideal response?
An ethanol processing plant operates relatively efficiently when operating at its designed "capacity". The firm is willing to pay more for delivery of corn to maintain this level of output. This indicates that the firm is likely to experience ______ (higher, lower, the same) average total costs operating at less than this level of output.
a. Higher b. Lower c. The same