As was demonstrated in 2007, firms in the shadow banking system
A) were very vulnerable to bank runs.
B) were protected from financial ruin by federal deposit insurance.
C) were more insulated from the financial crisis than were commercial banks.
D) were well insulated from bank runs.
A
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If the government does not know the efficient level of a Pigouvian tax to correct for a negative production externality, efficiency will still be enhanced so long as the government imposes a per-unit tax.
Answer the following statement true (T) or false (F)
If the quantity of real GDP supplied equals the quantity of real GDP demanded, then
A) nominal GDP must equal real GDP. B) real GDP must equal potential GDP. C) real GDP must be greater than potential GDP. D) real GDP might be greater than, equal to, or less than potential GDP. E) real GDP must be less than potential GDP.
A supply curve:
A. has a negative slope. B. is based on the assumption of a stable demand curve. C. illustrates the negative relationship between price and quantity supplied. D. illustrates the positive relationship between price and quantity supplied.
Other things equal, increased exports of Japanese products to the United States will:
A. Increase the supply of Japanese yen in the foreign exchange market B. Increase the demand for Japanese yen in the foreign exchange market C. Increase the demand for U.S. dollars in the foreign exchange market D. Have no effect on either the supply or demand for Japanese yen or American dollars