A bank's net interest margin is
A) total interest income minus total interest expense.
B) net interest income as a percent of bank equity.
C) net interest income as a percent of total bank assets.
D) net interest as a percent of total income.
C
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Country X and Country Y are two neighboring countries which are experiencing recession. The government of Country X reduced its expenditure during the recession while Country Y's government increased the supply of money in the economy
Which of the two policies will help the economy to recover from the recession?
Perfect competition is characterized by numerous products with well-known brand names.
Answer the following statement true (T) or false (F)
The multiplier effect
a. tells us nothing about how increases in investment spending affect GDP b. tells us that a change in investment spending changes equilibrium GDP by more than the change in investment c. works only for increases in investment d. is relevant only in situations where the marginal propensity to consume cannot be determined e. is relevant only in situations in which the MPC is between 0.5 and 0.7
Macland’s Power company is a natural monopoly. Its regulators have given Macland’s Power the price it can charge for the next five years with the fourth and fifth year’s price declining by 5%. After five years, Macland can renegotiate the price. What method are the regulators using to control this natural monopoly?
a. Cost plus regulation b. Price equals average total cost regulation c. Price cap regulation d. Cost elasticity mark up