How do specialized lending channels created by central banks affect the economy during a recession?
What will be an ideal response?
Central banks occasionally invent additional ways of increasing the supply of credit during financial crises by creating specialized lending channels. These increase lending in the credit market and thus indirectly increase the demand for goods, services, and labor.
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At the time of the Civil War the most important crop in the South was _________.
Fill in the blank(s) with the appropriate word(s).
A country produces only cans of soup and ink pens. If the country produces on its bowed outward PPF and increases the production of cans of soup, the opportunity cost of additional
A) cans of soup is decreasing. B) ink pens is increasing. C) cans of soup is increasing. D) cans of soup remains unchanged. E) More information is needed to determine what happens to the opportunity cost.
Bill created a new software program he is willing to sell for $300 . He sells his first copy and enjoys a producer surplus of $250 . What is the price paid for the software?
a. $50. b. $250. c. $300. d. $550.
Sam is a musician who is out of work because electronic equipment replaced live musicians. This is an example of:
a. structural unemployment. b. involuntary unemployment. c. frictional unemployment. d. cyclical unemployment.