In the Great Depression, the financial sector collapsed, as
A) banks engaged in ruinous competition.
B) the stock market boomed, so people withdrew most of their funds from banks and invested heavily in stocks.
C) the bond market boomed, so people withdrew most of their funds from banks and invested heavily in bonds.
D) many banks closed.
D
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Globalization ________ the wages of workers in the exporting industries and ________ the wages of workers in the import-competing industries.
A. lowers; raises B. raises; does not change C. raises; raises D. raises; lowers
Provided that firms have sufficient capital and labor to support an output increase, monetary and fiscal policy are likely to be the most effective when
A. prices and inventory stocks are both high. B. output is low and inventory stocks are low. C. output is low and inventory stocks are high. D. output and inventory stocks are both high.