An analysis of large declines in the stock market since the Great Depression indicates that
a. the stock market crash in October 1929 was more severe than subsequent crashes.
b. a prolonged recession will always follow a large decline in the stock market.
c. almost all stock market crashes since the Great Depression were followed by short recessions of 12 to 18 months, and in some cases, no recession at all.
d. the only way to recover from a stock market crash is through government spending, increased regulation, and tax-increases.
C
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According to the new classical view, budget deficits will
a. cause real interest rates to rise, which will decrease aggregate demand, output, and employment. b. lead to an expansion in spending, which will stimulate both real output and employment. c. fail to stimulate aggregate demand because people will save more in order to pay the higher future taxes implied by the expansion in government debt. d. lead to inflation because the deficits expand the money supply.
A WTO member country must offer all other member countries ________ that are offered to any single member country
a. common-market guarantees b. the same trade concessions c. the same basket of commodities d. import substitutions
In the United States, the working-age population refers to the:
A. civilian, noninstitutional population aged 16 and over. B. civilian, noninstitutional population of those between age 16 and age 64. C. population of those aged 16 and over. D. noninstitutional population of those between ages 16 and 64.
If a firm in a perfectly competitive market raises its price
A. it will sell more products. B. it will sell nothing. C. its sales will remain unchanged. D. it will sell fewer products.