Credit may dry up at the start of an economic downturn because of all of the following except:
A. the free-rider problem worsens during a downturn.
B. lenders require information and accurate information is more difficult to obtain.
C. it becomes more difficult for lenders to determine the creditworthiness of borrowers.
D. lenders see greater risk in making loans to borrowers.
Answer: A
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Left shoes and right shoes are perfect complements. An indifference curve for left and right shoes is a line with
A) constant slope. B) a 30-degree angle. C) a 45-degree angle. D) a 90-degree angle.
For main industrial countries such as Japan and the U.S
A) there is much less month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the short run. B) there is much more month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the short run. C) there is almost the same month-to-month variability of the exchange rate and price levels. D) it is hard to tell whether month-to-month variability of the exchange rate is similar to changes in price levels. E) there is much more month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the long run.
An increase in currency in circulation would ____ M1 and ____ M2. a. increase; increase
b. not change; increase. c. decrease; decrease. d. not change; decrease.
During the 2009-2010 debate on the stimulus package, democrats argued primarily for increased government spending. What effect would this have on the value of the multiplier?
a. It would decrease the value of the multiplier. b. It would have no effect on the multiplier. c. It would increase the value of the multiplier. d. The effect is uncertain.