The 1990-1992 recession was unlikely to be associated with financial factors since
A) there was little change in interest rates.
B) consumption did not drop.
C) interest spreads increased right from the start.
D) interest rates for lending and borrowing went up.
E) profits in the banking sector increased.
Correct Answer:
Verified
Q5: If the proportion of bad borrowers increases,
A)
Q6: Collateralizable wealth is
A) wealth in non-tangible assets.
B)
Q7: When there are credit-market imperfections, an increase
Q8: If consumers face higher interest rates when
Q9: If there are fewer bad borrowers in
Q11: Limited commitment means
A) one cannot credibly promise
Q12: Asymmetric information means
A) some market participants have
Q13: When consumers lend at a lower rate
Q14: The default premium increases when there is
Q15: In the two-period model, a bank
A) creates
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