(Last Word) According to the Austrian School, the best explanation for what caused the Great Recession was that:
A. tax rates that were too high discouraged spending.
B. government spending that was too low created insufficient public capital.
C. interest rates that were too low induced excessive borrowing.
D. interest rates that were too high discouraged firm borrowing and investment.
Answer: C
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John decides to leave college early and play professional sports. Which of the following economic principles does John use?
i. personal economic policies ii. marginal cost versus marginal benefit analysis iii. normative versus positive economics A) i and ii B) i, ii and iii C) ii only D) i and iii E) ii and iii
The money aggregate M1 consists of
A) currency and savings accounts. B) currency and checking deposits, including traveler's checks. C) only checking deposits and time deposits. D) checking accounts, savings accounts and Treasury bills.
Refer to Figure 7-1. Marginal private benefit is represented by which curve?
A) D2 B) Supply C) D1 D) All of the above represent marginal private benefit.
In the late 2000s, which source of funds for corporations grew the most?
A) net new stock issues B) net new bond issues C) net new loans D) net new commercial paper