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Author Question: During financial crisis of 2008-09, the government rescued financial firms and the auto industry. As ... (Read 101 times)

pragya sharda

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on: Jun 29, 2018
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.


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atrochim

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

B


pragya sharda

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Reply #2 on: Jun 29, 2018
Thank you :)


atrochim

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Reply #3 on: Jun 29, 2018
Happy to help you


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