In the 1980s, banks __________ the amount of highly speculative loans they were holding due to __________ deposit rates
A) increased; rising
B) increased; falling
C) decreasing; rising
D) decreased; falling
A
You might also like to view...
________ choose the quantities of factors of production to hire, and ________ choose the quantities of goods and services to produce
A) Entrepreneurs; firms B) Firms; firms C) Markets; markets D) Factor markets; goods markets E) Firms; households
If a household’s income declines, then its budget line is
A. unaffected. B. going to be steeper. C. shift parallel, closer to the origin. D. shift parallel, further away from the origin. E. become more concave toward the origin.
In the short-run, if the Federal Reserve increases interest rates, then consumption and investment ________, aggregate expenditure ________, and short-run equilibrium output ________.
A. increase; decreases; decreases B. increase; increases; increases C. decrease; decreases; decreases D. increase; increases decreases
Among the propositions of the Keynesian school of thought is
A. rational expectations. B. aggregate supply management is the key to a stable economy. C. economic policies are ineffective. D. aggregate demand determines equilibrium output.