The pressure on corporate executives to maintain the market price of their company's stock gives them an incentive to
A) engage in insider trading.
B) ignore the political consequences of what they do.
C) produce goods subject to rapid obsolescence.
D) pursue short-run profits at the expense of the company's long-run welfare.
E) take account in their decisions of the probable long-run effects.
E
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If the central bank can act as a lender of last resort during a banking panic, banks can
A) call in their loans to their customers and eventually restore the public's faith in the banking system. B) satisfy customer withdrawal needs and eventually restore the public's faith in the banking system. C) borrow more and more money from the central bank, and this will lower its reserves and decrease the public's faith in the banking system. D) encourage the public to borrow directly from the central bank, and this will worsen the banking panic.
Planned investment spending is higher
A) when real interest rate is higher. B) during financial frictions. C) when businesses are optimistic. D) all of the above. E) A and C.
Which of the following has the greatest effect on the rate of seasonal unemployment?
a. inflation b. lack of skills c. lack of information d. weather
A supply restriction that restricts the amount of a good that can be imported is a(n)
A. black market. B. import quota. C. white market. D. tariff.