According to classical economists, the credit market reaches an equilibrium when
A) desired investment equals desired saving.
B) desired investment equals planned changes in aggregate supply.
C) desired investment equals planned investment.
D) planned investment equals government expenditures.
A
You might also like to view...
After World War II millions of mortgages were provided by two federal government agencies, the __________ and the ____________.
Fill in the blank(s) with the appropriate word(s).
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Figure 19-1
?
Of the graphs in Figure 19-1, which one shows the effects of an economic boom in the United States and a depreciation of the dollar?
A. 1 B. 2 C. 3 D. 4
Which of the following is a government sponsored enterprise that funds or guarantees a substantial number of mortgage loans in the U.S.?
a. Fannie Mae b. Freddy Mac c. both A and B above d. neither A nor B above