Contagion is:
A. the rapid contraction of investment spending that occurs when interest rates are increased by the Federal Reserve.
B. the rapid inflation that results from the printing of money.
C. the failure of one bank spreading to other banks through depositors withdrawing of funds.
D. the phenomenon that if one bank loan defaults it will cause other bank loans to default.
Answer: C
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Credit cards are
A) not money. B) not money, because they can't be used to purchase goods and services. C) considered to be money. D) counted as a part of M2 but not M1.
Senator Jackson argues that replacing the federal income tax with a national sales tax would increase the level of output. Senator Feldman objects that this policy would benefit the rich at the expense of the poor
a. Both senators' arguments are primarily about equality. b. Both senators' arguments are primarily about efficiency. c. Senator Jackson's argument is primarily about equality, while Senator Feldman's argument is primarily about efficiency. d. Senator Jackson's argument is primarily about efficiency, while Senator Feldman's argument is primarily about equality.