An Indicator of the Increased Lack of Confidence in the Banking

question 74

Multiple Choice

An indicator of the increased lack of confidence in the banking system during the financial crisis of 2008-2009 in the United States was the:

• A) increase in the federal government budget deficit.
• B) decrease in interest rates.
• C) increase in the TED spread.
• D) decrease in the TED spread.

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Definitions:

Plant Sizes

Refers to the scale or capacity of a manufacturing facility or production unit in terms of its output or operations.

ATC

Abbreviation for Air Traffic Control, responsible for regulating and guiding aircrafts to ensure their safe operation in the sky.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's output expands, typically due to inefficiencies and increased complexity.

Average Total Costs

The total cost of production divided by the quantity of output produced; a measure of cost per unit of output.