One way for banks to reduce the principal-agent problems associated with trading activities is to
A) set limits on the total amount of a traders' transactions.
B) make sure that the person conducting the trades is also the person responsible for recording the transactions.
C) encourage traders to take on more risk if the potential rewards are higher.
D) reduce the regulations on the traders so that they have more flexibility in conducting trades.
A
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According to economists, if policymakers are serious about reducing fuel consumption, they need to implement policies that make drivers think carefully about the costs and benefits of every mile driven, and the best way to accomplish this is by
A) increasing the gasoline tax. B) raising mandatory fuel economy standards. C) converting all roads to toll roads. D) limiting the number of miles per year that each driver is allowed to drive.
The figure above represents the demand and cost functions facing a Brazilian Steel producing monopolist. The Brazilian firm is charging its foreign (U.S.) customers one half the price it is charging its domestic customers
Is this good or bad for the real income or economic welfare of the United States? Is the Brazilian firm engaged in dumping? Is this predatory behavior on the part of the Brazilian steel company?
M1 refers to:
A. Federal Reserve Notes and gold certificates. B. currency held by the public plus checking account balances. C. the broadest of the money-supply definitions. D. bank loans.
If nominal wealth increases faster than real wealth:
A. real wealth must eventually decline. B. society is better off than if nominal wealth growth had matched real wealth growth. C. real wealth will eventually rise faster in order to catch up. D. asset inflation has occurred.