Banks help savers find productive uses for their funds because banks are specialized in:
A. evaluating the riskiness of stocks.
B. securing government guarantees for loans.
C. obtaining preferential tax treatment for savers.
D. gathering information about and evaluating potential borrowers.
Answer: D
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Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family,
A) hamburgers and hot dogs are normal goods. B) hamburgers and hot dogs are substitutes. C) hamburgers and hot dogs are complements. D) hamburgers and hot dogs are inferior goods.
Current estimates of the marginal propensity to consume out of wealth are in the neighborhood of ________
A) three and one-half cents per dollar of wealth B) 45 cents per dollar of wealth C) 98 cents per dollar of wealth D) $4.87 per dollar of wealth
Which of the following revenue-raising options did the "colonial" government select to secure the resources needed to revolt?
(a) Printing money and borrowing from other countries (b) Printing money and confiscating property (c) Taxing and borrowing from other countries (d) Taxing and reducing non-military government spending
Firms that emit toxins into the air tend to
a. underproduce because the private cost of production exceeds the social cost b. overproduce because the social cost of production exceeds the private cost c. produce the same as nonpolluting firms d. produce at the socially optimal amount e. cover pollution costs in the product's price