Multiple Choice
What theory states that problems in financial markets can amplify shocks to the real economy and create a feedback loop, which exacerbates economic problems?
A) financial causal theory
B) financial simulation theory
C) financial accelerator theory
D) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q48: Deregulation refers to the rules placed on
Q49: What is the sub-prime market?
Q50: Sovereign debt refers to the bonds issued
Q51: The output gap refers to:<br>A) The difference
Q52: An economic bubble refers to when prices
Q54: The real economy refers to that part
Q55: A cyclical deficit occurs where government income
Q56: A sign that the 2007-09 global economic
Q57: Sovereign deficits are financed by<br>A) Governments printing
Q58: De-regulated financial markets mean that:<br>A) Financial institutions