Author Question: Fixing the insolvency problem caused by the Great Recession meant: a. Rapidly increasing the U.S. ... (Read 78 times)

pane00 · **on:** Jun 30, 2018

Fixing the insolvency problem caused by the Great Recession meant:
a. Rapidly increasing the U.S. money supply.
b. Relieving financial institutions of toxic assets and injecting new equity into them.
c.Changing banking rules so there was more financial competition.
d. Opening long-term financing sources, which would allow banks, companies, and the government to fund long-term needs, such as new branches, plants, and infrastructure (e.g., bridges and dams) needs.

Question 2

If the price of inputs rises when a nation is in the intermediate range:
a. Real GDP remains the same and average price level falls.
b. Real GDP remains the same and average price level rises.
c. Real GDP remains the same and average price level remains the same.
d. Real GDP falls and average price level rises.
e. Real GDP falls and average price level falls.