The contagion effect refers to the fact that

A) deposit insurance has eliminated the problem of bank failures.
B) bank runs involve only sound banks.
C) bank runs involve only insolvent banks.
D) the failure of one bank can hasten the failure of other banks.


D

Economics

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In the equation of exchange MV = PQ, V stands for

a. inventory turnover. b. total transactions in the economy. c. average rate of turnover of the money supply. d. variation in interest rates.

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In order to extract the entire consumer surplus, a firm should set prices exactly equal to the price that an individual actually pays

a. True b. False Indicate whether the statement is true or false

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Suppose a taxpayer has an income of $70,000 and a taxable income of $60,000, and pays $9,000 in taxes. If the taxpayer says she is taxed at a 15 percent tax rate, she is referring to the

A. Effective tax rate. B. Average tax rate. C. Marginal tax rate. D. Nominal tax rate.

Economics

Table 9.1 Disposable IncomeTotal Consumption(Billions of dollars per year)(Billions of dollars per year)$0$50200210What is the marginal propensity to consume in Table 9.1?

A. 0.15. B. 0.90. C. 0.80. D. 0.85.

Economics