10. A financial markets that occurs when institutions and markets. A. financial
ID: 1125328 • Letter: 1
Question
10. A financial markets that occurs when institutions and markets. A. financial shadow B. financial panic C. banking crisis D. banking cycle is a sudden and widespread dinnuption of the people suddenly lose faith in the liquidity oft tnancia 11. The short run between unemployment and inflation. llustrates the negative relationship A. Okuns law B. Phillips curve C. Johnson curve D. Friedman law 12. According to the the interest rate is determined by the supply and demand for money of the interest rate A. liquidity preference model B. phillips curve model C. krugman preference model D. jones curve model of 13. The higher the short term interest rate, the higher the- holding money A. opportunity cost B. sunk cost C. exchange cost D. negligent cost resources 14. Economics has to do primarily with the question of A. plentiful B. abundant C. expensive D. scarce economics prescribes how the economy should work. 15. A. Forensic B. Positive C. Negative D. NormativeExplanation / Answer
10. The correct answer to this question is "Financial Panic". That is the time when people lose faith in the financial market and their expectation of market crash lead to an economic crisis. It is generally caused by people losing faith in the financial institution.
11. In the short run, it's the "Philip curve" which illustrates the negative relationship between the inflation and unemployment.
12. it is the "Liquidity Preference model" where the demand and supply of money determine the interest rates. Higher the demand higher the rates and vice versa.
13. The higher the short-term interest rates the higher the "opportunity cost" holding cost of money.
14.Economy primarily deals with the "scarce" resources.
15. its the "Normative economics" which prescribes how the economy should work.
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