At the equilibrium rate of interest:
A) the quantity of credit demanded falls short of the quantity of credit supplied.
B) the quantity of credit demanded equals the quantity of credit supplied.
C) the quantity of credit demanded is zero.
D) the quantity of credit supplied is zero.
B
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The universal-service requirement complicates postal service pricing
Indicate whether the statement is true or false
Define the following terms and explain their importance to the study of economics
a. maximin criterion b. Nash equilibrium c. Dominant Strategy d. Zero-sum game e. Credible threat
Risk
a. can be reduced by placing a large number of small bets rather than a small number of large bets. b. can be reduced by increasing the number of stocks in a portfolio. c. Both A and B are correct. d. Neither A nor B are correct.
The fraction of deposits that banks are required by law to hold and not lend out are called its:
A. reserves. B. excess reserves. C. required reserves. D. net worth.