If the federal government had not bailed out the large financial institutions during the financial crisis of 2008-2009
A. the rise in overall stock prices would likely have been larger.
B. the fall in overall stock prices would likely have been smaller.
C. the fall in overall stock prices would likely have been larger.
D. the rise in overall stock prices would likely have been smaller.
Answer: C
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Nominal GDP is proportional to money stock when
a. velocity of money is volatile. b. velocity of money is constant. c. there are major changes in the value of velocity of money. d. velocity of money is zero.
During a depression, the best strategy of the Federal Reserve is to
A. sell government bonds, to make low-risk, sound assets available for commercial banks to buy. B. sell government bonds, in order to reduce the size of the government's deficits. C. sell government bonds, in order to increase aggregate demand. D. buy government securities.
In long-run equilibrium for a monopolistically competitive firm, economic profit equals zero and thus the outcome is efficient.
Answer the following statement true (T) or false (F)
Which of the following statements is true?
A) Corporations can issue stocks and bonds, while proprietorships cannot. B) Corporations face fewer taxes than do proprietorships. C) Corporations have one owner, while proprietorships have many owners. D) Proprietorships have limited liability while corporations have unlimited liability.