Which of the following is the aggregate demand explanation of the slow U.S. recovery?
A) There is insufficient credit to return the economy to the natural level of output.
B) There is insufficient demand to return the economy to the natural level of output.
C) The unemployment rate is too low to return the economy to the natural level of output.
D) The interest rate is too low to return the economy to the natural level of output.
E) Government spending is too low to return the economy to the natural level of output.
Correct Answer:
Verified
Q29: The leverage ratio is defined as:
A) the
Q30: When a liquidity trap situation exists, we
Q31: An increase in government spending will cause
Q32: Bank insolvency is more likely to occur
Q33: Why do banks maintain a certain level
Q35: How was the financial crisis in the
Q36: Deposit guarantees are put in place by
Q37: What happens to the AD curve when
Q38: What was the revised goal of the
Q39: An open market sale of bonds by
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents