During financial crisis of 2008-09, the government rescued ...

[pragya sharda]

During financial crisis of 2008-09, the government rescued financial firms and the auto industry. As a result,
 
  A) the government's budget deficit increased, the government's demand for loanable funds increased and private investment was crowded out.
  B) the government's rescue plan created a surplus of loanable funds.
  C) the private demand for loanable funds increased.
  D) the supply of loanable funds decreased in response to the government's budget deficit.
  E) real interest rates decreased.

Question 2

Refer to Table 5.1. Hector has a comparative advantage in the production of
 
  A) bracelets.
  B) tiaras.
  C) both products.
  D) neither product.

[atrochim]

Answer to Question 1

A

Answer to Question 2

B

[pragya sharda]

Thank you

[atrochim]

Happy to help you