Question

1. If an economy falls into a recession, there is no way to coordinate lower wages across the economy for workers according to Keynes because of the ________.

complexity argument

progressive wage theory

coordination argument

2. What is an example of a security?

Fiat money

Checking account

Credit cards

3. Banks that engage in riskier lending activities may reduce their odds of facing a bank run if they

reduce their holdings of US Treasuries.

raise the interest rates they pay to savers.

keep more of their assets in reserves.

Answer 1