Are markets always in equilibrium?
a. Yes, they are always at the equilibrium point, or very close to it.
b. Yes, because few things tend to alter supply and demand.
c. No, but if there is no interference, they tend to move toward equilibrium.
d. No, they never "settle down" into a stable price and quantity.
e. Uncertain, economic theory has no answer to this question.
c
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Financial panics characterized by depositor "runs" and consequent bank failures have not occurred in the United States since the 1930s primarily because
A) commercial banks now hold larger reserves. B) the Federal Deposit Insurance Corporation has reduced the fears of depositors. C) we have abandoned the gold standard. D) we have had no major recessions since the 1930s.
The market mechanism assures full employment and stable prices
a. True b. False Indicate whether the statement is true or false
Today, people changed their expectations about the future. This change
a. can cause a movement along a demand curve. b. can affect future demand but not today's demand. c. can affect today's demand. d. cannot affect either today's demand or future demand.
Which of the followings is not a bank's assets?
A) reserves B) loans C) government bonds D) checkable deposits