A Decline in Bank Lending During a Recession

question 1

Multiple Choice

A decline in bank lending during a recession

• A)indicates that a credit crunch is occurring.
• B)indicates that the demand for bank loans has declined.
• C)will generally result in higher real interest rates.
• D)might be the result of a credit crunch or a decline in the demand for bank loans.

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Definitions:

Farm Income

The earnings obtained from agricultural activities and operations, including crop sales, livestock sales, and government subsidies.

Surpluses

Situations in which the quantity of a good or service supplied exceeds the quantity demanded at a given price.

Migration

The movement of individuals or groups from one location to another, often for reasons such as employment, education, or economic opportunities.