Securitization can not help financial intermediaries
A) diversify their portfolios.
B) avoid bankruptcy.
C) attract more investors to buy and hold their securities.
D) decrease the cost of borrowing.
B
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap.
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
One characteristic of a financial crisis caused by macroeconomic imbalances is that it
A) may or may not be predictable. B) will occur eventually even though its timing is unpredictable. C) may be caused by expansionary fiscal policies accompanied by high budget deficits. D) may be caused by high deficits financed by increases in the money supply. E) All of the above.
Which of the following affects the rate of economic growth? a. the quality of available resources. b. the quantity of available resources. c. technological change
d. all of the above.
If a firm shuts down in the short run, it will:
A. incur losses equal to its fixed costs. B. have total revenue greater than total fixed costs. C. reduce its losses to zero. D. do this because P > AVC.