A financial intermediary is an institution that stands between savers and the government
a. True
b. False
Indicate whether the statement is true or false
False
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Individuals who are more risk averse
a. buy less insurance b. buy more insurance c. are not more or less inclined to buy insurance d. are philosophically opposed to insurance
When marginal cost exceeds average total cost,
a. average fixed cost must be rising. b. average total cost must be rising. c. average total cost must be falling. d. marginal cost must be falling.
If banks are currently holding zero excess reserves and the Fed raises the required reserve ratio, which of the following will happen?
A) Banks will have a reserve deficiency. B) Banks will have positive excess reserves. C) Banks will begin to extend more loans. D) Banks will begin to extend more credit. E) b and d