If the price of inputs falls and the level of consumer indebtedness rises:
a. Price index falls, and real GDP rises.
b. Price index falls, and real GDP falls.
c. Price index falls, and the change in real GDP is uncertain.
d. The change in price index is uncertain, and real GDP rises.
e. The change in price index is uncertain, and real GDP falls.
Question 2 - Which of the following was not a cause of the Great Recession?
a. Excessive use of the originate-to-hold strategy.
b.Government incentives to increase home ownership.
c. Government encouragement of creative home-buying strategies.
d. Relaxation of bank underwriting standards.
e. All of the above were causes of the Great Recession.
Question 3 - If the price of inputs falls and the level of consumer indebtedness rises:
a. Price index rises, and the change in real GDP is uncertain.
b. Price index falls, and real GDP rises.
c. The change in price index is uncertain, and real GDP rises.
d. Price index falls, and real GDP falls.
e. Price index falls, and the change in real GDP is uncertain.
Question 4 - Which of the following was not a cause of the Great Recession?
a. The relaxation of banking rules and regulations that permitted speculation.
b.Government incentives to increase home ownership.
c. Government encouragement of creative home-buying strategies.
d. Relaxation of bank underwriting standards.
e. All of the above were causes of the Great Recession.
Question 5 - If the price of inputs falls and the level of consumer indebtedness rises:
a. Price index falls, and the change in real GDP is uncertain.
b. The change in price index is uncertain, and real GDP rises.
c. Price index rises, and the change in real GDP is uncertain.
d. Price index falls, and real GDP rises.
e. Price index falls, and real GDP falls.
Question 6 - A major cause of the Great Recession was:
a. A severe increase is U.S. banking regulations that prohibited or stalled the free market.
b.Excessive foreign exchange speculation.
c. Contractionary fiscal policies.
d. Excessive money creation by the Federal Reserve immediately before and during the downturn.
e. A shift from an originate-to-hold to an originate-to-distribute mortgage origination strategy.
Question 7 - If the price of inputs falls and the level of consumer indebtedness rises:
a. Price index rises, and real GDP rises.
b. Price index rises, and real GDP falls.
c. Price index rises, and the change in real GDP is uncertain.
d. Price index falls, and real GDP rises.
e. Price index falls, and the change in real GDP is uncertain.
Question 8 - A major cause of the Great Recession was:
a. The liberalization of U.S. banking regulations that led to excessive risk taking.
b.Excessive foreign exchange speculation.
c. Contractionary fiscal policies.
d. Excessive money creation by the Federal Reserve immediately before and during the downturn.
e. None of the above.
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