During the real estate boom of the early 2000s, some banks operated with leverage ratios in excess of 30-to-1

Budget projections for 2014-2020 indicate both higher levels of government spending and large budget deficits. According to the Keynesian view, this will lead to

a. an increase in aggregate supply during that decade. b. weak aggregate demand and a continuation of recessionary conditions. c. an increase in aggregate demand and real output. d. higher interest rates and taxes that will retard future growth.

An example of contractionary fiscal policy is

A) an increase in government expenditures, or an increase in taxes, or both. B) a decrease in government expenditures, or a decrease in taxes, or both. C) an increase in government expenditures, or a decrease in taxes, or both. D) a decrease in government expenditures, or an increase in taxes, or both. E) increasing government expenditures while holding taxes constant.