The 1990-1992 recession was unlikely to be associated with financial factors since
A) consumption did not drop.
B) there was little change in interest rates.
C) profits in the banking sector increased.
D) interest rates for lending and borrowing went up.
E) interest spreads increased right from the start.
Correct Answer:
Verified
Q1: If the proportion of bad borrowers increases
A)the
Q2: For a consumer bound by the collateral
Q3: In a fully-funded social security program
A)the young
Q4: If consumers face higher interest rates when
Q6: A collateral constraint captures the idea that
A)the
Q7: Limited commitment means
A)only governments can borrow.
B)there is
Q8: In a pay-as-you-go social security system, everyone
Q9: For a consumer not bound by the
Q10: The commitment problem that may make a
Q11: If the value of collateral falls for
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