U PLS (SLO/EO: 11a) If the U.S. dollar depreciates relative to currencies in other countries, then U.S. imports will and exports will increase; increase decrease, decrease decrease; increase increase; decrease Question 30 3 pts (SLO/EO: 6,12) Long recessions often follow banking crises because: banking crises may cause a surplus of credit, so that interest rates fall to levels so low that investors earn very little in interest income. the vicious cycle of deleveraging that follows leads to overpriced assets. consumer and investment spending increase too rapidly, causing high rates of inflation monetary policy is not very effective because banks hold on to excess reserves and are unwilling to lend them out.

(SLO/EO: 11a) If the U.S. dollar depreciates relative to currencies in other countries, then US. imports will and exports will increase; increase decrease; decrease decrease; increase increase; decrease Question 30 (SLO/EO: 6,12) Long recessions often follow banking crises because: banking crises may cause a surplus of credit, so that interest rates fall to levels so low that investors earn very little in interest income. the vicious cycle of deleveraging that follows leads to overpriced assets. consumer and investment spending increase too rapidly, causing high rates of inflation. monetary policy is not very effective because banks hold on to excess reserves and are unwilling to lend them out. 3 pts