The bandwagon effect corresponds best to which of the following?
A) Snob effect
B) External economy
C) Negative network externality
D) Positive network externality
D
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During the first three years of its existence, the euro
A) depreciated against the $U.S. B) maintained a strict parity with the $U.S. C) strengthened against the $U.S. D) proved to be an impossible dream. E) exported exclusively to the U.S.
Keynes assumed that money has ________ rate of return
A) a positive B) a negative C) a zero D) an increasing
Banks, like any other business, face a world of uncertainty and they either make a profit or suffer loss. If the losses become substantial, banks can fail and that occurs when
a. all of their loans are repaid and they cannot loan out their excess reserves b. the legal reserve requirement is raised and they have to curtail the amount of money they can lend c. a large proportion of their loans are not repaid (loans became bad investments) and depositors want more of their demand deposits than the bank has on hand d. excess reserves are greater than required reserves and banks have too much money in their vaults e. interest rates go so high banks are unable to make loans
Deficit spending results whenever the government
A. Uses borrowed funds to finance expenditures that exceed tax revenue. B. Issues bonds to finance the debt. C. Refinances the debt. D. None of the choices are correct.