If the price of inputs falls and the budget deficit rises due to an increase in government spending, then the:
a. Price index falls, and real GDP falls.
b. Price index falls and the change in real GDP is uncertain.
c. Price index is uncertain, and real GDP rises.
d. Price index is uncertain, and real GDP falls.
e. Neither the price index nor real GDP changes.
Question 2 - Amajor cause of the Great Recession was:
a. Moral hazard.
b.Excessive foreign exchange speculation.
c. Contractionary fiscal policies.
d. Lack of incentives for homeowners.
e. None of the above.
Question 3 - If the price of inputs falls and the budget deficit rises due to an increase in government spending, then the:
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. Price index is uncertain, and real GDP rises.
e. Price index is uncertain, and real GDP falls.
Question 4 - Which of the following is not generally considered to be a major cure for insolvency?
a. Equity infusions.
b. Expansionary monetary policies.
c. Financial restructuring.
d. New management strategies.
e. Asset liquidations.
Question 5 - If the price of inputs falls and the budget deficit rises due to an increase in government spending, then the:
a. Price index rises, and the change in real GDP is uncertain.
b. Price index falls, and real GDP rises.
c. 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.
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