During the financial crisis of 2007-2009,
A) mortgage-backed securities became more liquid.
B) information costs of mortgage-backed securities rose.
C) information costs of mortgage-backed securities declined.
D) the tax treatment of mortgage-backed securities was changed.
B
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Briefly define real and potential GDP, and explain the relationship between real GDP and potential GDP. How can we measure potential GDP?
What will be an ideal response?
Economists use what term to describe the want-satisfying power of a good?
A) demand B) utility C) marginal propensity to consume D) income elasticity
Use the following diagram to answer the next question.
Based on this diagram, we can say ________.
A. crowding out is limiting the effectiveness of expansionary monetary policy B. investment demand will not respond when interest rates change C. there is a liquidity trap D. monetary policy is likely to be pro-cyclical
One World View article titled "Global Depression" states, "The Great Depression wasn't confined to the U.S. economy." This implies that many other countries
A. Were producing inside their production possibilities curves. B. Experienced an increase in real GDP. C. Were producing on their production possibilities curves. D. None of the choices are correct.