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Question
The price of a barrel of oil doubled between 2007 and the middle of 2008. To make matters worse, a financial crisis hit the U.S. economy starting in August of 2007. Which of the following is true of the Chinese experience?
A) The worldwide decline in demand led to a collapse of Chinese exports.
B) Instead of relying solely on the economy's self-correcting mechanism, much more aggressive fiscal expansions than those of the U.S. (in addition to a substantial monetary easing) served to shift the AD curve back to general equilibrium relatively quickly.
C) The Chinese economy was better able than the U.S. economy to weather the financial crisis with output growth starting to grow earlier and more quickly than that of the U.S.
D) All of the above.
E) None of the above.
Answer
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Related questions
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If aggregated demand is less than actual output, unplanned inventory ________ will cause output to ________.
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C) depletion; rise
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A) cut; keep from accumulating
B) expand; keep from accumulating
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D) expand; build up
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In the Keynesian framework, as long as output is above the equilibrium level, unplanned inventory investment will remain ________ and firms will continue to ________ production.
A) negative; lower
B) negative; raise
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In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain ________ and firms will continue to raise production.
A) below; negative
B) above; negative
C) below; positive
D) above; positive
Q:
Keynes mentioned two factors that influenced planned investment spending:
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B) interest rates and business expectations about the future.
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Everything else held constant, if total consumption increases from $600 to $800 because of an increase of disposable income of $400, then the mpc is equal to
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Q:
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An autonomous depreciation of the U.S. dollar makes American goods ________ relative to foreign goods and results in a ________ in U.S. net exports, everything else held constant.
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An increase in government spending causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________, everything else held constant.
A) rise; LM; right
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In the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________, the equilibrium level of aggregate output to fall, and the IS curve to shift to the ________, everything else held constant.
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A rise in autonomous planned investment spending causes the equilibrium level of aggregate output to ________ and shifts the ________ curve to the ________, everything else held constant.
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A) right; fall
B) right; rise
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D) left; rise
Q:
Everything else held constant, if aggregate output is to the ________ of the IS curve, then there is an excess supply of goods which will cause aggregate output to ________.
A) right; fall
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C) left; fall
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Q:
When the interest rate rises,
A) planned investment falls.
B) planned investment rises.
C) planned investment will be unaffected.
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Q:
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Researchers at the Federal Reserve found that M2 money demand functions performed ________ in the 1980s, with M2 velocity moving ________ with the opportunity cost of holding M2.
A) poorly; erratically
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Q:
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Q:
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A) declining interest rates from late 1979 until 1981.
B) the severe recession in 1981-82.
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Q:
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Q:
Banking crises have occurred throughout the world. What similarities do we find when we look at the different countries?
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All of the following are common to banking crises in different countries except
A) financial liberalization or innovation.
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B) home mortgages.
C) education loans.
D) vacation loans.
Q:
During times of financial crisis, mark-to-market accounting
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Q:
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A) screening; restrictive covenants
B) screening; branching restrictions
C) identifying; branching restrictions
D) identifying; credit rationing