Credit markets are
A) bad, as they cause people to accumulate debt.
B) not important for the financial crisis.
C) important, but given too little attention in the past by macroeconomists.
D) markets that work perfectly.
C
You might also like to view...
Which of the following is not an obstacle to development?
A. Overpopulation B. Excessive investment C. Political instability D. Corruption
When a firm is experiencing diseconomies of scale
A) the MP curve has a negative slope. B) the LRAC curve has a positive slope. C) it must also experience diminishing returns to labor. D) the MC curve has a negative slope.
Which of the following is inversely related to consumption spending?
a. Wealth b. Interest rates c. Disposable income d. Optimism about future income e. None of the above.
Because of the multiplier, a one-time change in expenditure will...
a) have little secondary effect on real GDP b) expand real GDP by an infinite amount c) generate more additional real GDP than the initial change in expenditure d) decrease saving and investment activity and thereby decrease future real GDP