As Was Demonstrated in 2007, Firms in the Shadow Banking

question 47

Multiple Choice

As was demonstrated in 2007, firms in the shadow banking system

• A)were very vulnerable to bank runs.
• B)were protected from financial ruin by federal deposit insurance.
• C)were well insulated from bank runs.
• D)were more insulated from the financial crisis than were commercial banks.
• E)were less a source of macroeconomic risk than commercial banks.

Evaluate the effectiveness of active stabilization policies in addressing unemployment and inflation.

Recognize the significance of automatic stabilizers in the economy and their impact on output and employment.

Discuss the implications of fiscal policy lags on the economy's adjustment to short-term and long-term goals.

Understand the concept and impact of net exports on aggregate demand and the stabilization policies to address it.

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Definitions:

Spanish-American-Cuban-Filipino War

Another term for the Spanish-American War of 1898, highlighting the involvement and impact on Cuba and the Philippines.

Frontier Thesis

A theory proposed by historian Frederick Jackson Turner which argues that the American character and society have been shaped by the challenges and opportunities of the frontier.

American Character

American character refers to the traits, attitudes, and cultural attributes commonly associated with the American people and their society.

Continental Frontier

Refers to the outward expansion of European-American settlements across the North American continent, pushing the frontier westward from the 17th to the 19th centuries.