Under fractional banking, when a bank lends to a customer
A. the money supply increases.
B. bank profitability is decreased.
C. the bank is protected from a run.
D. bank credit decreases.
Answer: A
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Comparing a discount bond and a coupon bond with the same maturity
A) the coupon bond has the greater effective maturity. B) the discount bond has the greater effective maturity. C) the effective maturity cannot be calculated for a coupon bond. D) the effective maturity cannot be calculated for a discount bond.
Other things remaining the same, if a large part of the population decided against having soda for health reasons, there would be a(n):
a. increase in the quantity of soda supplied. b. increase in the quantity supplied of complements like fries and burgers. c. decrease in the price of soda. d. rightward shift of the demand curve for soda. e. decrease in the quantity demanded of substitutes like mineral water.
Business cycles result from recurrent shifts of the aggregate supply and demand curves.
Answer the following statement true (T) or false (F)
What effects will globalization have on labor demand? What will happen to the wages of U.S. workers as more foreign trade occurs?
What will be an ideal response?