In the Recent Global Economic Crisis,all of the Following Are

question 50

Multiple Choice

In the recent Global Economic Crisis,all of the following are causes that pushed the IS curve to the left EXCEPT

• A)the negative wealth effect from the collapse of the housing bubble.
• B)the end of cash-out mortgage refinancing.
• C)growing unwillingness of banks and nonbank financial institutions to grant loan.
• D)slow and minimal response of the U.S.government.

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Definitions:

Bankruptcy

A legal proceeding for liquidating or reorganizing a business. Also, the transfer of some or all of a firm’s assets to its creditors.

Debt Restrictions

Clauses or covenants in a loan agreement that limit or restrict the borrower's actions to protect the lender’s interests.

Restructuring Debt

The process of renegotiating the terms of existing loans to improve financial stability.

Composition

The makeup or structure of something, in finance it might refer to the mix of assets in a portfolio or ingredients of a financial product.