Today, bank runs are not a major problem for the U.S. banking system because
a. bank runs are now illegal.
b. banks now hold 100 percent of their deposits in reserve.
c. banks are now all government-operated.
d. the federal government now guarantees the safety of deposits at most banks.
d
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Actions by the Federal Reserve to influence the level of GDP are known as
A) cyclical policy. B) monetary policy. C) procyclical policy. D) fiscal policy.
The price of a good will tend to fall when
a. there is excess demand for the good. b. there is excess supply of the good. c. demand for the good increases. d. the supply of the good decreases.
Capital income in the U.S. equals approximately ________ of GDP.
A. 75 percent B. 10 percent C. 25 percent D. 50 percent
Answer the following statement true (T) or false (F)
1) The size and scope of government inhibit the flow of information to decision makers, leading to inefficient outcomes. 2) The pursuit through government of a transfer of wealth at society's expense is called "rent seeking." 3) The principal-agent problem is a problem for the private sector but does not apply to political decision making. 4) Medicare is the U.S. government's largest unfunded liability. 5) A debt crisis refers to how much government spending exceeds tax revenues in a given year.