A good example of using the discount rate to serve the lender of last resort role for the financial system occurred during the
A) savings and loan crisis of the 1980s.
B) stock market crash of 1987.
C) sharp rise in government deficits during the 1980s.
D) developing-country debt crisis of the 1980s.
B
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Keynes believed that the way to prevent recessions and depressions was to
A) increase aggregate demand through expansionary fiscal policy. B) maximize the crowding out effect. C) only change tax rates as a means of regulating the economy. D) reduce spending when there is a recessionary ga
If a number greater than the mean (average) of a series of observations is added to the series, the new mean is:
A) greater than the original mean. B) smaller than the original mean. C) same as the original mean. D) either greater or smaller than the original mean depending on the number of observations in the series.