. In 2008, when the net worth of Trust Bank became negative, depositors made a beeline to withdraw their deposits. They feared that they might lose all of their deposits if they did not withdraw them. Given the macroeconomic dangers of such a situation, the government of the country decided to ensure that the depositors do not lose their money even if the bank goes bankrupt. The policy designed
by the government exemplifies _____.
a. open market operations
b. preferred risk policies
c. deposit insurances
d. quantitative easing
c
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An international financial crisis is
A) when a major bank defaults. B) the rapid withdrawal of foreign investments and loans from a nation. C) when at least one developing country defaults on its loans. D) when a world leader is deposed from office.
Total expenditure in the United States is equal to consumption expenditure plus investment
A) plus government expenditure on goods and services plus imports of goods and services. B) minus government expenditure on goods and services minus imports of goods and services. C) plus government expenditure on goods and services plus exports of goods and services. D) plus government expenditure on goods and services plus exports of goods and services minus imports of goods and services. E) plus government expenditure on goods and services plus exports of goods and services plus imports of goods and services.
Refer to Figure 3.1. If one of the graphs represents the total benefit of an activity, which other graph best represents the marginal benefit of the activity?
B. B
C. C
D. D
In a many-worker economy the consumption possibilities line touches the production possibility curve
A. at two points. B. at one point. C. at three points. D. at more than three points.