The recession of 2007-2009 happened in part because, after the housing bubble burst in 2006, disruptions in the financial market made it difficult:
A. for businesses and consumers to borrow money.
B. to fight inflation.
C. to shift the PAE line downward.
D. for government to finance deficit spending.
Answer: A
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Which of the following assets yields a 0 percent return?
A) U.S. Treasury Bills B) Excess reserves C) Deposits with correspondent banks D) Municipal bonds
If two variables B and V are positively correlated, B ________ when V ________
A) goes up; goes down B) goes up; goes up C) goes down; goes up D) remains unchanged; goes up
The Social Security Trust Fund
a. will provide a stream of future revenue for the federal government. b. is a "pot" of money set aside for the payment of future benefits. c. is a net asset of the U.S. Treasury worth approximately $2 trillion. d. is of zero asset value to the federal government.
How does specialization affect employment patterns?
(A) By making sure that each person produces the goods for which he or she has a comparative advantage. (B) By using the absolute advantage that many people have in production work. (C) By creating specialized work for a few people. (D) By changing job availability in a country or region.