In the 1970s and 1980s, savings banks invented NOW accounts to get around financial regulations. This is an example of:
A. quantitative easing.
B. a moral hazard problem.
C. deleveraging.
D. the law of diminishing control.
Answer: D
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The higher the death rates in less-developed countries, the smaller the average family size
a. True b. False Indicate whether the statement is true or false
OECD data for 1960 through 1999 indicates that a 10 percent increase in government expenditures as a percent of GDP
a. increases economic growth by about 5 percent. b. increases economic growth by about 2 percent. c. has no effect on economic growth. d. reduces economic growth by about 1 percent.
In a simplified banking system subject to a 25 percent required reserve ratio, a $1,000 open-market purchase by the Fed would cause the money supply to:
A. increase by $1,000. B. decrease by $1,000. C. decrease by $4,000. D. increase by $4,000.
The summation of all individual firm marginal cost curves above the minimum of the average variable cost curve:
A. is the market shut-down point. B. is the market demand curve. C. is the market marginal revenue curve. D. is the market supply curve.