A rise in deposit rates, all else constant, __________ a bank's __________ risk
A) lowers; credit
B) lowers; interest rate
C) raises; credit
D) raises; interest rate
D
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The substitution effect of a change in the real interest rate is an example of
A) an intratemporal substitution effect. B) an intertemporal substitution effect. C) an atemporal substitution effect. D) a temporary substitution effect.
A firm in perfectly competitive industry is maximizing profit at Q = 3,000 . Then its fixed cost increases. The profit-maximizing output is now
a. greater than 3,000 and profit decreases b. less than 3,000 and profit decreases c. greater than 3,000 and profit is unchanged d. equal to 3,000 and profit decreases e. equal to 3,000 and profit increases
Which of the following is not counted as income when the official poverty rate is calculated?
a. Medicaid benefits b. dividends derived from the ownership of stock c. earnings derived from a part-time job d. money income derived from transfer payments
Figure 4-6
The deadweight loss of the tax illustrated in is given by the area
a.
ABEH.
b.
DFE.
c.
EKG.
d.
EFG.