If there is a trade deficit, that creates a current account deficit
A. a currency must ultimately decrease in value.
B. exports must be greater than imports.
C. there must be a capital account deficit, too.
D. there must be a capital account surplus.
Answer: D
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As long as a bank's stockholders' equity is greater than zero:
A) the stockholders in the bank bear all the risk involved. B) the customers of the bank bear all the risk involved. C) the bank bears all the risk involved. D) bank runs are not possible.
Reliance on expert opinion to predict consumer behavior has the advantage of being a relatively low cost approach to gathering information. In many situations, however, it is subject to several sources of bias that can undermine its reliability
Indicate whether the statement is true or false
The Federal Reserve stepped in to help
a. Bear Stearns but not Lehman Brothers. b. Lehman Brothers but not Bear Stearns. c. both Bear Stearns and Lehman Brothers. d. neither Bear Stearns nor Lehman Brothers.
"If China and India continue their economic expansion, the world cannot provide enough raw materials without terrible shortages worldwide." Evaluate this statement
a. True, increased demand from developing countries will swamp the existing supply of resources. b. True, increased demand from China and India will lead to large shortages in the North America and Europe. c. False, the shortage will be limited to China and India. d. False, increasing scarcity will result in higher prices and the deployment of new technologies that increase the efficiency of production, and together these markets forces will help to balance demand and supply worldwide.