All of the following would be true for the banking system if there was no government regulation except
A. The money supply would be determined by individual banks.
B. The banking system would be regulated by consumers.
C. The money supply would be subject to abrupt changes.
D. Depositors would bear all the risks of bank failures.
Answer: B
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A) supplied B) demanded C) technically efficient D) marketed
A central tenet of the position against policy activism is that
A) consumption spending is highly unstable. B) consumption spending is highly stable. C) aggregate policies have little effect on consumption. D) instability in private consumption will always be offset by variations in other elements of private spending.
Deadweight loss occurs when
A) consumer surplus is greater than producer surplus. B) surplus losses to one group due to intervention are not offset by surplus gains to another. C) consumer surplus is reduced. D) consumer surplus is negative.
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a. True b. False Indicate whether the statement is true or false