Multiple Choice
The recession of 2007-2009 happened in part because, after the housing bubble burst in 2006, disruptions in the financial market made it difficult:
A) for government to finance deficit spending.
B) to fight inflation.
C) for businesses and consumers to borrow money.
D) to shift the PAE line downwarD.After the housing bubble burst, many loans went bad and banks and other lenders reduced availability of loans.
Correct Answer:
Verified
Correct Answer:
Verified
Q15: The vertical intercept of the consumption function
Q41: The slope of the consumption function:<br>A)is vertical.<br>B)is
Q49: In the short-run Keynesian model, to close
Q75: In the basic Keynesian model, a decrease
Q84: Autonomous expenditure is the portion of planned
Q114: Data on output and planned aggregate expenditure
Q118: Refer to the figure below. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3718/.jpg"
Q120: Refer to the figure below. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3718/.jpg"
Q134: Changes in taxes and transfers affect planned
Q143: In the short-run Keynesian model, if the