In the Great Recession of 2007-2009, the stock market values shrank, causing a reverse:
A. Wealth effect
B. Real-balances effect
C. Interest-rate effect
D. Expectations effect
Ans: A. Wealth effect
Economics
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The capital stock increases whenever
A) gross investment is exceeds net investment. B) net investment exceeds gross investment. C) gross investment is negative. D) net investment is positive.
Economics
A real appreciation will tend to cause
A) an increase in exports. B) a reduction in imports. C) an increase in net exports. D) a reduction in demand for domestic goods. E) none of the above
Economics