Despite saving Lehman Brothers from failing, the Fed and the Treasury decided to allow Bear Stearns to go bankrupt, which it did in September, 2008

One explanation for the fall in the value of the U.S. dollar since 2001is

a. the mix of an tight fiscal/tight monetary policy over the period. b. the relative weakness of the U.S. economy over the period. c. a higher degree of accommodation of supply shocks in the United States relative to our trading partners. d. the disintegration of the Bretton Woods system during these years.

An increase in the desire to save by households will cause

A) a reduction in output. B) a reduction in investment. C) an increase in output. D) no change in investment and no change in output.