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Unformatted text preview: B) Housing prices did not fall during the Great Depression. C) More banks failed during this crisis than the Great Depression. D) The FDIC prevented many banks from failures during this crisis compared with the Great Depression. Solutions: D) (instead of C) earlier version of this solutions had this wrong). 3. 911 Terrorist Attack most likely lead to: A) a destruction of capital stock so national wage level rose. B) IS curve to shift left because the increased uncertainty reduced investment. C) LM curve to shift left because it destroyed a lot of assets. D) IS curve to shift left because government increased military spending. Solutions: B)...
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- Spring '08