The process in which financial institutions accept savings from businesses, households, and governments and lend the funds to other businesses, households, and governments is called
A. adverse selection.
B. moral hazard.
C. central banking system.
D. financial intermediation.
Answer: D
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Steve sells hotdogs from a vending cart downtown. The table above shows his daily total revenues at four different prices. Between which two prices is the demand for hotdogs
a. elastic? b. unit elastic? c. inelastic?
A rapid, unexpected increase in the inflation rate could make real interest rates negative
a. True b. False Indicate whether the statement is true or false
Firms have an incentive to substitute capital for labor as the
A. price of labor decreases. B. price of labor increases. C. marginal product of labor increases. D. price of capital increases.
Which of the following is a primary concern of social regulation?
A. Price fixing B. Per se violation C. Product design D. Industry concentration