Multiple Choice
The solution to the recent financial crisis is
A) better financial disclosure and adequate regulatory supervision of credit markets.
B) higher borrowing costs for riskier firms.
C) higher interest rates to discourage risky borrowing.
D) expansionary fiscal policy.
E) government extending credit to consumers and firms.
Correct Answer:

Verified
Correct Answer:
Verified
Q3: An increase in the real interest rate<br>A)
Q4: When drawn against the real interest rate,
Q5: When drawn against the current real wage,
Q6: For the economy as a whole, investment
Q7: A firm that is a lender finances
Q9: When drawn against the real interest rate,
Q10: An increase in lifetime wealth<br>A) shifts the
Q11: When drawn against current income, the slope
Q12: Investment tends to be more variable over
Q13: Next period's capital is equal to current-period