Why are financial-sector crises scarier than collapses in other sectors of the economy?
A. Financial-sector crises happen more often than collapses in other sectors.
B. If the financial sector fails, it can bring the whole economy down with it.
C. The financial sector is the biggest sector.
D. Most people work in the financial sector.
Answer: B
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Personal income is defined as
A) national income less retained earnings plus transfer payments and plus interest on government bonds. B) national income less depreciation. C) national income less personal taxes. D) national income plus retained earnings less transfer payments and less interest on government bonds.
The higher the anticipated inflation rate, _____
a. the more workers will ask for in wages and the more firms will agree to pay b. the more workers will ask for in wages and the less firms will agree to pay c. the less workers will ask for in wages and the less firms will agree to pay d. the higher the real wage increases offered by firms e. the higher the real wage increases asked for by workers
Malthus's gloomy economic outlook for humankind is based on the following principle: a. Population, when unchecked, increases at a faster pace than the production of output
b. Population grows at a slower pace than the production of output. c. Resources grow faster than humankind can reproduce itself. Therefore, humankind can never take full advantage of available resources. d. Resources and population grow at constant percentage rates, but political divisions prevent an equitable division of world output.
The principle tool the Fed uses to keep the federal funds rate close to the target is:
A. open market operations. B. the required reserve rate. C. the IOER rate. D. discount lending.