Exam 10: The Great Recession: a First Look

Refer to the following table when answering the following questions. Table 10.2: Hypothetical Bank Sheet ($ millions) -The bank's assets are equal to ________ and liabilities are ________.

Short-run output ________ in the last quarter of 2008 and ________ by the middle of 2009.

Loans, investments, and cash are on the asset side of a bank's balance sheet.

The following figure shows the daily three-month treasury yield in September 2008. Refer to the following figure when answering the following questions. Figure 10.1: Daily Three-Month Treasury Yield: September 2008 -Consider the data in Figure 10.1. What event precipitated the change in the yield in mid-September?

When a bank experiences a bank run, it may have to:

In the months following the collapse of Lehman Brothers, banks became increasingly worried about:

According to The Economist, in 2006, approximately one-half of all home loans were subprime.

Briefly discuss the macroeconomic outcomes of the financial crisis.

During the Great Recession, the unemployment rate peaked at ________ percent.

In contrast to the dot-com stock market bubble, the bursting of the housing bubble ________, implying ________.

After the Fed began to raise the federal funds rate in 2004:

Which investment bank collapsed in September 2008?

According to The Economist, by 2006 ________ of new home loans were ________ loans.

Between May 2004 and May 2006, the Fed raised the federal funds rate by 4 percentage points due to rising inflation worries.

In a typical recession, generally only ________ expenditure rises.

A salve to the wounds of the financial crisis was the rapid decline of oil prices in 2008.

________ peaked at the end of ________. By February 2010, ________.

The global savings glut can be defined as:

What declined during the Great Recession?

Refer to the following table when answering the following questions. Table 10.2: Hypothetical Bank Sheet ($ millions) -Column A is bank ________ and Column B is bank ________.