Banks can lower their liquidity risk by having more __________ on their balance sheet
A) government securities
B) transactions deposits
C) loans
D) savings deposits
A
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In the political marketplace, firms do all of the following EXCEPT
A) vote. B) pay taxes. C) evaluate policy proposals of politicians. D) benefit from public goods and services.
The quantity demanded of a good
a. is the amount that would be purchased with an unlimited income b. is the amount that would be demanded even if income were zero c. is subject to the buyer's income constraints d. is a fixed amount unaffected by the buyer's circumstances e. must match the amount actually purchased in the market
By allowing an income-tax deduction for charitable contributions, the government
a. encourages a private solution to a particular positive-externality problem. b. discourages a private solution to a particular positive-externality problem. c. encourages a private solution to a particular negative-externality problem. d. discourages a private solution to a particular negative-externality problem.
The law of diminishing marginal productivity implies that the marginal product of a variable input:
A. never declines. B. eventually declines. C. always declines. D. is constant.