Fixing the financial system after the Great Recession meant:
a. Finding a way to make the banking and general financial systems solvent, and solving the nation's illiquidity problems.
b. Finding private (domestic and foreign) private buyers for U.S. subprime loans.
c.Changing banking rules so there was more financial competition.
d. Opening long-term financing sources, which would allow banks, companies, and the U.S. government to fund their 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 falls and average price level rises.
b. Real GDP rises and real GDP remains the same.
c. Real GDP remains the same and average price level falls.
d. Real GDP remains the same and average price level rises.
e. Real GDP remains the same and average price level remains the same.
Question 3 - Quantitative easing is when:
a. Lending rules and underwriting standards are relaxed, which often leads to speculation.
b. Increasing a nation's money supply even though interest rates appear to be at a minimum.
c.Increasing government spending and reducing taxes even though they do not appear to be increasing aggregate demand.
d. All of the above.
Question 4 - If the price of inputs rises when a nation is in the intermediate range:
a. Real GDP rises and average price level falls.
b. Real GDP falls and average price level rises.
c. Real GDP rises and real GDP remains the same.
d. Real GDP remains the same and average price level falls.
e. Real GDP remains the same and average price level rises.
Question 5 - To fund its expenditures after the Great Recession, the U.S. government:
a. Borrowed in private capital markets.
b. Borrowed in the federal funds market.
c.Created money to finance its spending needs.
d. All of the above.
Question 6 - If the price of inputs rises when a nation is in the intermediate range:
a. Real GDP rises and average price level rises.
b. Real GDP rises and average price level falls.
c. Real GDP falls and average price level rises.
d. Real GDP rises and real GDP remains the same.
e. Real GDP remains the same and average price level falls.
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