A Serious Consequence of a Financial Crisis Is

question 22

Multiple Choice

A serious consequence of a financial crisis is

• A)a contraction in economic activity.
• B)an increase in asset prices.
• C)financial engineering.
• D)financial globalization.

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Definitions:

National Saving

The total amount saved by the government, households, and the business sector in an economy.

Net Capital Outflow

The difference between the purchase of domestic assets by foreigners and the purchase of foreign assets by domestic residents over a specific period, reflecting the flow of capital out of and into a country.

Buy American Campaign

A movement encouraging consumers to purchase goods made in the United States in order to support domestic businesses and labor.

Trade Balance

The difference between a country's exports and imports of goods and services.