The very low interest rates following the financial crisis of 2007-2009 resulted in:
A) many people moving their funds from CDs and money market accounts to checking accounts in order to have more liquidity without sacrificing much interest
B) funds being transferred from checking accounts to time deposits
C) further declines in checking accounts that began in the early 1970s
D) people switching their funds from checking deposits to CDs in the pursuit of higher interest rates
A
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Aggregate demand increases when
A) foreign incomes fall. B) interest rates rise. C) the exchange rate rises. D) None of the above answers is correct.
In the early 2000s, lenders began issuing mortgage loans to people who would normally not be qualified to take out loans because they did not meet lending standards. Those borrowers are known as
A) alternative borrowers. B) weak borrowers. C) subprime borrowers. D) credit risks.
When investors use borrowed funds to pay for investments, it's called:
A. leveraging. B. tulip mania. C. hedging. D. herding.
Which of the following methods could be used by an employer to align the incentives of an employee with its own interests?
a. Paying market wages b. Paying efficiency wages c. Signaling d. Partially outsourcing human resource functions