According to this Application, if a bank does NOT pass the test, the Fed can
A) make the bank raise additional capital from the financial markets.
B) prevent the bank from paying out dividends to its shareholders.
C) force the bank to close.
D) Both A and B are correct.
D
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In the 1970s we had _____ recessions and in the 1980s we had _____ recessions.
Fill in the blank(s) with the appropriate word(s).
International trade decreases the demand for workers in domestic industries that
A) produce goods that are exported from the country. B) produce the goods in which the nation has a comparative advantage. C) help businesses import and export. D) produce goods that also are imported into the country. E) service imported goods.
The best example of a frictionally unemployed individual is
A) Charles who has lost his job as an autoworker because of increased imports and can't find a good job that utilizes his skills. B) Mary who quit her job to find work closer to her home. C) Sam who lost his job as a real estate salesperson when the housing market went soft because of a recession. D) Sandy who has few skills and is no longer looking for work.
As part of the "wealth channel of monetary policy," a higher money supply __________ bond prices and thus __________ spending
A) raises; raises consumption B) raises; raises investment C) lowers; lowers consumption D) lowers; lowers investment