Most economists agree that the economy will adjust to a recessionary gap, but the adjustment process
a. is rapid and destabilizing.
b. is moderately quick, but not as rapid as necessary.
c. takes place solely on the supply side.
d. is very slow.
d
Economics
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What are some of the problems that exist with a laissez-faire economy?
What will be an ideal response?
Economics
To avoid maturity mismatches, most financial intermediaries tend to
A) have assets whose maturities on average exceed the maturities of their liabilities. B) have assets whose maturities on average are less than the maturities of their liabilities. C) have assets whose maturities on average mirror the maturities of their liabilities. D) hold primarily real assets.
Economics