A credit-driven bubble arises when ________ in lending causes ________ in asset prices which can cause ________ in lending
A) a decrease; a decrease; an increase
B) a decrease; an increase; an increase
C) an increase; an increase; a further increase
D) a decrease; a decrease; a further decrease
C
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In the above figure, the initial supply of loanable funds curve is SLF0 and the demand for loanable funds investment curve is DLF0. An increase in the real interest rate to 7 percent could be caused by
A) an increase in investment demand. B) a decrease in the expected profit. C) an increase in people's disposable incomes. D) an expansion that increased both saving and investment by the same amount.
When inflation is very low, how do workers and firms adjust their expectations of inflation?
A) They tend to ignore inflation. B) They are more aggressive in asking for wage and price increases. C) They rapidly adjust their expectations of inflation downward. D) They rapidly adjust their expectations of inflation upward.
The Argentine banking crisis of 2001 resulted from Argentina's banks being required to
A) purchase large amounts of government debt. B) pay back the value of failed loans. C) make risky real estate loans. D) make loans to only state-owned businesses.
The American Federation of Labor (AFL)
A. became the nation's predominant labor organization in the 1930s. B. had a main goal in the first decades of its existence of the formation of small producers' cooperatives. C. originally organized unions along craft lines as opposed to industrial lines. D. and the Congress of Industrial Organizations (CIO) split up in 1955.