During the 2008 financial crisis, banks restricted ________, and the M2 money multiplier ________
A) buying securities; increased
B) lending; increased
C) deposits; increased
D) lending; decreased
E) deposits; decreased
D
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Exchange rates allow for a comparison of the trade values of goods and services across countries
a. True b. False Indicate whether the statement is true or false
According to the median voter model, a candidate (in a two-person race) is more likely to label himself or herself a "middle-of-the-roader" than a conservative or liberal because
A) the terms "conservative" and "liberal" are offensive to many people in today's world. B) the terms "conservative" and "liberal" are considered terms used of people who are in the "wings" or "extremes" of the political distribution, and a candidate can only win an election by being perceived as closer to the center of the political distribution than his or her opponent. C) they receive better treatment by the press. D) it is customary and it has become a tradition in American politics. E) none of the above
The optimal level of output may be defined as that level of output where:
a. the marginal benefit of the last unit purchased equals its marginal cost. b. total benefit equals total cost. c. it is impossible to define optimal in any meaningful way. d. average benefit exceeds average cost by the greatest amount. e. marginal benefit exceeds marginal cost by the greatest amount.
The error term in a regression equation is said to exhibit homoskedasticty if _____.
A. it has zero conditional mean B. it has the same variance for all values of the explanatory variable C. it has the same value for all values of the explanatory variable D. if the error term has a value of one given any value of the explanatory variable