Which of the Following Is True

question 22

Multiple Choice

Which of the following is true?

• A)The recession of 2008-2009 was a result of a few large banks with many branches.
• B)During the recession of 2008-2009, consumption and investment spending reduced substantially.
• C)The recession of 2008-09 was a result of the customers' fear that depositor withdrawals could force a bank to close.
• D)During the recession of 2008-09, aggregate demand declined because of a sudden increase in the demand for imported goods.
• E)The recession of 2008-09 was a result of imprudent management or even criminal activity on the part of bank officers.

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Definitions:

General Agreement on Tariffs and Trade

An international treaty that was aimed at reducing tariffs and other trade barriers to promote international trade; it was the precursor to the WTO.

Trade Restrictions

Measures imposed by governments to limit or control international trade, such as tariffs, quotas, and embargoes.

Retaliation

Actions taken in response to an offense or wrongdoing, often seen in international trade policies as countermeasures to tariffs.

Trade War

A situation where countries impose tariffs or other trade barriers against each other in response to disputes, which can lead to decreased international trade.