Central bank lending to bail out troubled firms is known as ________, while allowing troubled firms to conceal the true value of their assets is called ________
A) crony capitalism; larceny
B) liquidity provision; regulatory forbearance
C) securitization; nonconventional monetary policy
D) subprime lending; regulatory arbitrage
B
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Which of the following would cause both the equilibrium price and equilibrium quantity of barley (assume that barley is an inferior good) to increase?
A) a drought that sharply reduces barley output B) an increase in consumer income C) a decrease in consumer income D) unusually good weather that results in a bumper crop of barley
Central banks often intervene in currency markets. This activity is called
A) managed floating. B) fixing exchange rates. C) currency warfare. D) super-pegging. E) flexible floating.
Which economists believe a decrease in marginal tax rates will ultimately cause the economy to move from point B to point D in Figure 18.3?
A. Modern Keynesians. B. Supply-siders. C. Monetarists. D. Keynesians.
The price-elasticity of demand is always negative because of:
A. The law of demand B. Percent-changes being used in the formula C. The midpoint formula D. Scarcity