During the three years following the financial crisis of 2008,
a. the monetary base more than doubled and the M1 money supply increased even more rapidly.
b. the monetary base more than doubled, but the M1 money supply increased much less rapidly.
c. the monetary base fell by almost 50 percent, but the M1 money supply continued to grow at a steady rate.
d. the monetary base fell by almost 50 percent, causing a sharp reduction in the M1 money supply.
B
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The percentage return on a loan expressed in terms of goods and services is the
A) real wage rate. B) CPI interest rate. C) real interest rate. D) nominal wage rate. E) nominal interest rate.
External financing by ________ should be more important in developing countries than in industrialized countries because information about private firms is more difficult to collect in developing countries
A) financial intermediaries B) bonds C) stock D) direct lending