Which of the following statements is incorrect? a. Holdings of liquid assets (or access to credit from financial institutions) reduce the likelihood of financial distress. b. Financial imbalances and asset price crashes have been the key source of recessions in the U.S. in recent past. c. The 1918-1919 Great Influenza pandemic did not lead to an economic depression, although it caused significant fatalities around the world. d. L-shaped recovery pattern in Greece in the aftermath of 2007-2009 global financial crisis was in part due to the unavailability of monetary policy tools to the Greek authorities (because of Euro membership)
Which of the following statements is incorrect? a. Holdings of liquid assets (or access to credit from financial institutions) reduce the likelihood of financial distress. b. Financial imbalances and asset price crashes have been the key source of recessions in the U.S. in recent past. c. The 1918-1919 Great Influenza pandemic did not lead to an economic depression, although it caused significant fatalities around the world. d. L-shaped recovery pattern in Greece in the aftermath of 2007-2009 global financial crisis was in part due to the unavailability of monetary policy tools to the Greek authorities (because of Euro membership)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following statements is incorrect?
a. Holdings of liquid assets (or access to credit from financial institutions) reduce the
likelihood of financial distress.
b. Financial imbalances and asset price crashes have been the key source of recessions in
the U.S. in recent past.
c. The 1918-1919 Great Influenza pandemic did not lead to an economic depression,
although it caused significant fatalities around the world.
d. L-shaped recovery pattern in Greece in the aftermath of 2007-2009 global financial
crisis was in part due to the unavailability of
authorities (because of Euro membership)
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