Think of the aggregate expenditure model. At the point where the aggregate expenditure curve intersects the 45-degree (or income) line,

Since 1974, commercial banks importance as a source of funds for nonfinancial borrowers

A) has shrunk dramatically, from around 40 percent of total credit advanced to around 25 percent by 2014. B) has shrunk dramatically, from around 70 percent of total credit advanced to below 50 percent by 2014. C) has expanded dramatically, from around 50 percent of total credit advanced to above 70 percent by 2014. D) has expanded dramatically, from around 30 percent of total credit advanced to above 50 percent by 2014.

The most likely cause of a hyperinflation is

A) central bank incompetence. B) the inability to finance government spending through taxation or borrowing. C) an acute shortage of natural resources. D) over-aggressive labor unions.