Which of the following is a drawback of FDIC insurance?
a. It leads to excess industry profits.
b. It has failed to arrest the trend of bank failures.
c. It leads to the problem of moral hazard.
d. It undercuts private insurance companies.
c
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A decrease in the money supply:
a. raises the interest rate, causing an increase in investment and an increase in GDP. b. lowers the interest rate, causing an increase in investment and an increase in GDP. c. raises the interest rate, causing a decrease in investment and a decrease in GDP. d. lowers the interest rate, causing a decrease in investment and an increase in GDP. e. lowers the interest rate, causing a decrease in investment and a decrease in GDP.
The best practices frontier is similar in construction and meaning to the
A) the cost frontier. B) the absolute advantage frontier. C) production possibilities frontier. D) the supply and demand diagram.
Bankers must always trade off
a. honesty and dishonesty. b. stocks and loans. c. prudence and profits. d. gold and cash. e. All of the above are correct.
The labor demand curve slopes down because
A. fewer workers work at low wages. B. capital will substitute for labor as wages decrease. C. of the diminishing marginal product of labor. D. of the income effect of rising wages.