Some form of financial distress can become a full-blown recession if risk lead to ____ interest rates and ____ aggregate demand.
A. higher; increased
B. higher; decreased
C. lower; increased
D. lower; decreased
Answer: B
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Suppose the majority of the shares of Ford stock were sold to a Japanese firm. Assuming all else remains constant, this will
A) decrease net portfolio investment in the United States. B) increase foreign direct investment in the United States. C) increase the balance of the U.S. current account. D) create a capital outflow in the United States. E) increase the balance of the U.S. financial account.
An expansionary monetary policy raises firms' cash flows by ________ interest rates
A) lowering real B) lowering nominal C) raising real D) raising nominal
Recessions and depressions are the principal examples of
A. market failure. B. coordination failure. C. central planning. D. socialist contradictions.
Supply factors in economic growth include the following, except:
A. Improvements in technology B. Expansion of capital stock C. Increases in purchases of output D. Better education and training