As the Fed responded to the financial crisis that followed the collapse of the housing market, certain banks were deemed too:
A. large to fail, as their failure would carry the risk of causing a domino effect in the highly integrated financial system.
B. large to stay afloat, as they would be too costly to save.
C. small to fail, as they were easy to save.
D. large to fail, and were consequently purchased by the government.
A. large to fail, as their failure would carry the risk of causing a domino effect in the highly integrated financial system.
You might also like to view...
Which of the following allows an economist to conclude that the welfare or happiness of society as a whole is clearly increasing?
A) A decrease in nominal GDP B) A decrease in real GDP C) An increase in nominal GDP D) An increase in real GDP E) None of the above.
An increase in the U.S. price level (foreign prices held constant) will cause a leftward shift in the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
A relative measure of the importance of trade is
A) the dollar value of trade. B) trade as a percentage of GDP. C) the dollar value of trade adjusted for inflation. D) trade as a percentage of investment.
A good's price elasticity of demand can be calculated by using the formula of
A) percentage change in price divided by percentage change in quantity demanded. B) percentage change in quantity demanded divided by percentage change in price. C) percentage change in price divided by percentage change in income. D) absolute change in quantity demanded divided by absolute change in price.