A bank with some monopoly power may be able to __________ the rate on its deposits and so __________ its net interest income
A) lower, lower
B) lower, raise
C) raise, lower
D) raise, raise
B
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"A government surplus can decrease investment through the crowding-out effect because the surplus decreases the supply of loanable funds." Is the previous assertion right or wrong? Why?
What will be an ideal response?
If consumer income and prices increase by the same percentage,
A) the consumer will buy more of both goods. B) the consumer will buy more of both goods if they are both normal goods. C) the consumer will buy less of both goods if they are both inferior goods. D) the consumer's utility maximizing bundle stays the same.
If a macroeconomist aggregates many markets into one, then
a. individual market differences are eliminated. b. one must not confuse ravioli and hot dogs. c. she is performing a meaningless exercise. d. differences between products must still be noted.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.