According to Walton and Rockoff, which of the following was the most important in bringing the banking crises of the 1930s to an end?
a. the elimination of many weak banks through bankruptcy (survival of the fittest)
b. the promise of federal bank deposit insurance
c. New Deal spending programs
d. World War II
b. the promise of federal bank deposit insurance
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If government expenditures are increased by $50 billion, assuming all other factors stay constant, we would expect the initial impact of the increased spending to cause real GDP to
A. increase by $50 billion. B. stay constant. C. increase by less than $50 billion. D. increase by more than $50 billion.
One of the influences that the world economy has on U.S. aggregate demand comes from changes in
A) foreign income. B) world opinion. C) foreign aid. D) world pollution. E) foreign governments.
"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the short run in the corn market, what is TRUE if the production of ethanol increases?
A) The demand curve for individual corn farmers will shift upward. B) The price individual corn farmers receive will decrease. C) The total cost curve for individual corn farmers will shift upward. D) The marginal cost curve for individual corn farmers will shift downward.
When quantity demanded decreases at every possible price, the demand curve has
a. shifted to the left. b. shifted to the right. c. not shifted; rather, we have moved along the demand curve to a new point on the same curve. d. not shifted; rather, the demand curve has become flatter.