The first test of the Federal Reserve as lender of last resort occurred with the:
A. introduction of flexible exchange rates in the U.S. in 1971.
B. attack on Pearl Harbor by the Japanese.
C. stock market crash in 1929.
D. widespread failures of Savings and Loans in the 1980's.
Answer: C
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In the dominant firm model, the fringe firms
A) are price takers. B) maximize profit by equating average revenue and average cost. C) determine their price and output before the dominant firm determines its price and output. D) all of the above E) none of the above
Which of the following was NOT one of the causes of the Asian financial crises of 1997 and 1998?
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