One characteristic of a financial crisis caused by macroeconomic imbalances is that it
A) may or may not be predictable.
B) will occur eventually even though its timing is unpredictable.
C) may be caused by expansionary fiscal policies accompanied by high budget deficits.
D) may be caused by high deficits financed by increases in the money supply.
E) All of the above.
E
You might also like to view...
Mary is willing to pay $50 for a Christmas tree, John is willing to pay $45 and Jeff is willing to pay $40. The price of a tree is $40. The total consumer surplus for Mary, John and Jeff taken together is
A) $15. B) $135. C) $40. D) $95. E) $120.
According to the quantity theory of money, which one of the following economic variables would change in response to an increase in the money supply?
a. prices b. real income c. velocity d. employment
When a local grocery store offers discount coupons in the Sunday paper it is most likely trying to
a. reduce prices for all customers. b. encourage literacy. c. encourage arbitrage. d. price discriminate.
Assume the economy is operating at a real GDP above full-employment real GDP. Keynesian economists would prescribe which of the following policies?
a. Expansionary b. Nonintervention c. Passive monetary policy d. Contractionary