There are some economists who argue that low mortgage interest rates in the time period preceeding the financial crisis of 2007-2009 were a result of a ___________ in global savings. They argue that emerging countries began to save ___________ which helped to _____________ the supply of loanable funds in the United States
A) glut; less; decrease
B) glut; more; increase
C) decline; more; increase
D) decline; less; decrease
B
You might also like to view...
The "invisible hand" described by Adam Smith refers to the
a. allocative role of markets and market forces b. importance of government intervention and central planning c. actions of successful entrepreneurs in directing the economy d. role of monopolized industries in leading the nation e. value of religious belief in creating an ideal economy
Given that frozen yogurt and ice cream are substitutes, a shift in preferences in favor of yogurt would be predicted to do all of the following EXCEPT
A) raise the equilibrium price of frozen yogurt. B) increase the quantity supplied of frozen yogurt. C) increase the supply of ice cream. D) increase the demand for frozen yogurt.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.
The figure below shows a situation where the producers of Good X are forming an international cartel. Here, MR = Marginal Revenue, and MC = Marginal Cost. The cartel will set a monopoly price for its output.
If the world market for Good X were perfectly competitive, the price per unit would be ________ and the producer surplus would be
A. $600; $22.5 billion. B. $500; $10.0 billion. C. $1,000; $50.0 billion. D. $600; $90.0 billion.