One of the serious drawbacks of the deposit insurance system in the United States is that:
A. the system took away the Federal Reserve's ability to change reserve requirements.
B. if insured intermediaries make many bad loans, the taxpayers may be responsible for covering the losses.
C. the system took away the Federal Reserve's ability to conduct open-market operations.
D. bank failures continue to occur regularly.
Answer: B
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The above table describes the accounts for the country of Pacifica. Using this information, net exports for Pacifica equals
A) $100. B) $900. C) -$100. D) $650.
Bob is looking for work after school, but everywhere he fills out an application, the managers say they always have a lot more applications than open positions. Tom has a law degree. Several firms have made him offers, but he thinks he might be able to find a firm where his talents could be put to better use
a. Bob and Tom are both frictionally unemployed. b. Bob and Tom are both structurally unemployed. c. Bob is frictionally unemployed, and Tom is structurally unemployed. d. Bob is structurally unemployed, and Tom is frictionally unemployed.
Oil is an input used to produce gasoline. An increase in the price of oil would be represented by:
A. a leftward shift of the supply curve for gasoline. B. a rightward shift of the supply curve for gasoline. C. a movement up and to the right along the supply curve for gasoline. D. a movement down and to the left along the supply curve for gasoline.
GDP in an economy is $4,600 billion. Consumer expenditures are $3,500 billion, government purchases are $900 billion, and gross private domestic investment is $400 billion. Net exports are:
a. -$400 billion b. +$200 billion c. +$400 billion d. -$200 billion