A production possibilities frontier is a diagram that shows the combinations of output that an economy can produce, given its current factors of production and level of technology
a. True
b. False
Indicate whether the statement is true or false
True
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A financial crisis is
A) not possible in the modern financial environment. B) a major disruption in the financial markets. C) a feature of developing economies only. D) typically followed by an economic boom.
A __________ may agree to waive a restrictive covenant, especially if doing so appears to make the loan __________
A) borrower; no riskier B) borrower; riskier C) lender; no riskier D) lender; riskier
According to adaptive expectations theory, which of the following would be the result of expansionary monetary and fiscal policies?
a. There is a short-run reduction in unemployment. b. There is a long-run trade off between inflation and unemployment. c. The inflation rate falls in the long run. d. The economy always operates at the natural rate of unemployment
A bank has $2 million in checkable deposits. In the bank's balance sheet, this would be part of:
A. Assets B. Liabilities C. Capital stock D. Net worth