Conditions that likely contributed to a credit crunch during the global financial crisis include:
A) capital shortfalls caused in part by falling real estate prices.
B) regulated hikes in bank capital requirements.
C) falling interest rates that raised interest rate risk, causing banks to choose to hold more capital.
D) increases in reserve requirements.
Answer: A
Economics
- If the Federal Reserve creates new money to finance the government's deficit, then it is monetizing the deficit.(True/False)
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- The demand curve for a firm in a competitive environment is_______.