Today, bank runs are
a. uncommon because of the high reserve requirement.
b. uncommon because of FDIC deposit insurance.
c. common because of the low reserve requirement.
d. common because the FDIC is nearly bankrupt.
b
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Refer to Figure 2-8. What is the opportunity cost of producing 1 ton of coconuts in Costa Rica?
A) 3/8 of a ton of pineapples B) 2/3 of a ton of pineapples C) 1 1/2 tons of pineapples D) 100 tons of pineapples
Assuming there are 200 million people employed in the United States and 5 million people unemployed, the unemployment rate would therefore approximately equal
A) 2.4 percent. B) 3.2 percent. C) 5.0 percent. D) an undetermined amount given the lack of information
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns
to complete equilibrium. a. The quantity of real loanable funds per time period rises and nominal value of the domestic currency remains the same. b. The quantity of real loanable funds per time period falls and nominal value of the domestic currency remains the same. c. The quantity of real loanable funds per time period and nominal value of the domestic currency remain the same. d. The quantity of real loanable funds per time period rises and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.