Which of the following may NOT help avoid a financial crisis?
A) Maintaining credible and sustainable fiscal policies
B) Regulation and supervision of the financial system
C) Disclosure of timely information to lenders, investors, and depositors about key economic variables such as the central bank's holding of international reserves
D) Immediately bailing out financial intermediaries and standing ready to bail out others in case a financial crisis occurs
E) Maintaining credible and sustainable monetary policies
D
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An increase in nominal GDP will
A. decrease the transactions demand and the total demand for money. B. decrease the transactions demand for money but increase the total demand for money. C. increase the transactions demand and the total demand for money. D. increase the transactions demand for money but decrease the total demand for money.
Changes in business activity are
A. referred to as the ebb and flow of business. B. caused by the changing seasons every year. C. always undesirable. D. referred to as business fluctuations.