Virtual Currency System 2 (VCS2) is poses a __________ risk to nations in which is it used because ___________________________
a. High; it can be used directly by end users to buy real-world goods and services.
b. High, it weakens central banks' abilitiesto control their monetary bases.
c. Low; it can be spent only in virtual worlds.
d. Low; when it is exchanged for real-world currencies, only a small portion of the exchange actually influences the nation's monetary base.
e. Medium; its conversion into real-world currencies causes only minor movements in nations' M2 money multiplier.
.C
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Recall the Application. The loans made to borrowers who have a limited ability to actually repay their mortgages are known as
A) no-fault loans. B) stimulus loans. C) bankruptcy loans. D) subprime loans.
With regard to environmental programs and regulations, economic analysis indicates that
a. environmental quality is something that people value and, therefore, are willing to pay for. b. people value many other things, but environmental values always come first. c. income levels exert little impact on the demand for environmental quality. d. the cost of an environmental policy matters little if the policy provides environmental health benefits.
If the economy in the graph shown were at point B, and the government wished to bring the economy back to its long-run equilibrium, it might:
A. increase income tax. B. decrease tax credits. C. increase government spending. D. All of these would move the economy to its potential GDP from point B.
Bank mergers require government approval because banking officials want to make sure that:
A. the merger will create a larger bank. B. the merger will not result in regulatory competition. C. the merger will not create a monopoly. D. the merged bank will be more profitable.