A serious consequence of a financial crisis is
A) a contraction in economic activity.
B) an increase in asset prices.
C) financial engineering.
D) financial globalization.
A
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Which of the following is consistent with Keynes's view of Say's law?
A) Saving increases by $3 billion, consumption falls by $3 billion, and investment rises by $3 billion. B) Consumption rises by $3 billion and saving rises by more than $3 billion. C) Saving rises by $3 billion, consumption falls by $3 billion, and investment rises by something less than $3 billion. D) Saving rises by $3 billion, consumption falls by $3 billion, and investment rises by $6 billion. E) none of the above
The marginal product of labor may increase rapidly initially as more
A) workers are able to specialize. B) total product is decreasing. C) the amount of other inputs is held constant. D) workers will get crowded in a fixed factory.