Author Question: To deal with dangerous behavior in the financial system, macro prudential tools can be used to aim ... (Read 18 times)

LCritchfi · **on:** Jun 30, 2018

To deal with dangerous behavior in the financial system, macro prudential tools can be used to aim directly at

A) borrowers.
B) lenders.
C) banks and other financial institutions.
D) none of the above
E) all of the above

Question 2

An economy is said to be in the liquidity trap when the short-term ________ is down to zero.

A) real interest rate on corporate bonds
B) nominal interest rate on government bonds
C) nominal interest rate on corporate bonds
D) real interest rate on government bonds