Which statement best describes the government’s response to bank failures in the early 1930s?
a. The government responded swiftly and quickly boosted the economy.
b. The government largely ignored failures and let banks fix their own problems.
c. The government responded with aid efforts, but only after the decline was well underway.
d. The government’s deposit insurance program quickly eased depositors’ fears.
c. The government responded with aid efforts, but only after the decline was well underway.
You might also like to view...
"Ceteris paribus" refers to the idea that if more than two variables are graphed, only one variable must be held constant
Indicate whether the statement is true or false
Suppose a company expects prices in general to rise by 5%, but the price of its product rises by 2%. How will the company respond to the price change?
A) It will increase production since it's getting a higher price for the product. B) It will increase production more slowly since it's price is rising more slowly than average. C) It will reduce production since it perceives a relative decline in the demand for its product. D) It will stop production and shut down until prices rise more quickly.
Which of the following conditions define the short-run for any industry?
a. Firms do not incur a fixed cost. b. Firms incur both fixed as well as variable costs. c. Firms can easily enter and leave the market. d. Firms can enter but cannot leave the market.
While some supporters of the balanced budget amendment argue that governments should balance their budgets just like households do, which of the following is a valid argument against a balanced government budget?
a. The government has macroeconomic responsibilities. b. The government has microeconomic responsibilities. c. The government is larger than a household. d. Households depend on the government.