Recession can cause widespread bank crises for all of the following reasons except:
A. borrowers' default rates increase.
B. there is less business investment as banks make fewer loans.
C. the negative effect on banks' balance sheets.
D. bank capital increases.
Answer: D
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When a U.S. investor buys a bond issued in a foreign country,
A) the balance on the current account decreases. B) the balance on the capital account decreases. C) the balance of trade decreases. D) the balance on the financial account decreases.
Keynesian picture the aggregate demand curve as rather __________, partly because interest rates may be __________ to changes in the real money supply
A) flat; highly responsive B) flat; quite unresponsive C) steep; highly responsive D) steep; quite unresponsive
Which of the following is true for a perfectly competitive firm in the long run?
a. MR = MC = ATC b. MR = MC = AFC c. MC = ATC = AFC d. MR = MC > ATC e. MR = MC > AVC
Excessive dependence on cheaper foreign imports can cause a(n) ________ in certain sectors of the economy
A) leftward shift in the domestic labor demand curve. B) upward movement along the domestic labor demand curve. C) rightward shift in the domestic labor demand curve. D) downward movement along the domestic labor demand curve.