Financial institutions that cut back on their lending are engaged in ________
A) liability management
B) deleveraging
C) financial innovation
D) torsion control
B
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In a market in which firms operate in monopolistic competition,
A) the HHI for a single firm exceeds 2500. B) firms compete on price, quality and marketing. C) in the long run firms produce at their efficient scale. D) in the long run firms are not able to charge a marku
What is the government purchases multiplier if the tax rate is 0.2 and the marginal propensity to consume is 0.8? Assume the economy is closed
A) 2.78 B) 5 C) 6.25 D) 100
If tastes for a good increased and the price of a substitute good decreased at the same time, as a result: a. prices would rise
b. prices would fall. c. larger quantities to be exchanged. d. we would not know which direction either prices or quantities exchanged would be altered without more information.
If the MPC is 0.8, then the multiplier is 0.2.
Answer the following statement true (T) or false (F)