"Recession" refers to a period when real GDP in the economy
A) declines for at least six months. B) grows rapidly.
C) experiences a rise in living standards. D) suffers due to political instability.
A
You might also like to view...
Who suffers primarily when the federal government has to bail out a financial intermediary through the deposit insurance system?
A) the bank officers B) the taxpayers C) the bank shareholders D) the U.S. Treasury
If you were the Chairman of the Fed and faced inflation, you would most likely
a. encourage commercial banks to provide loans by buying government securities b. encourage commercial banks to provide loans by raising the discount rate c. encourage commercial banks to provide loans by selling government securities d. restrict commercial bank lending by selling government securities e. restrict commercial bank lending by lowering the federal funds rate
John reads in a local newspaper that a decrease in the demand for money has resulted in a decrease in the interest rate. He realizes that this is the prime time to buy a car with low interest rates. Which of these factors is driving John's demand in this example?
a. The interest rate effect b. The exchange rate effect c. The wealth effect d. The accelerator effect
The principle of voluntary exchange is based on the idea of:
A. making assumptions. B. isolating variables. C. thinking at the margin. D. rational self-interest.