An exchange rate crisis may lead to a banking crisis and disintermediation

The federal budget deficit acts as an automatic stabilizer because

A) Medicaid payments increase during expansionary periods. B) unemployment insurance payments decrease during a recession. C) food stamp payments increase during expansionary periods. D) government tax revenues decrease during a recession.

Pension plans, because of the __________-term nature of their liabilities, prefer to hold __________-term assets

A) long; long B) long; short C) short; long D) short; short