Systemically important financial institutions are:
A) banks that are owned and run by the government.
B) large banks that have become a large market power.
C) all banks whose value of liabilities exceeds its value of assets.
D) all banks whose value of assets exceeds its value of liabilities.
B
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"When a company's depreciation is larger than its gross investment, net investment becomes negative and the firm's capital stock decreases." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
According to the active policy approach, the elimination of a recessionary policy _____
a. can only be achieved by decreasing wages b. requires a public policy of wage and price controls c. should be accomplished by stimulating aggregate demand d. will increase unemployment e. will cause a recession
Most economic model builders would claim that their models
a. include all real-world economic activities b. portray how the real economy works c. take into account all the complexities of how people behave d. contradict the ceteris paribus assumption e. consider all the important pressing issues people confront
Two goods, X and Y, are complementary goods if the demand for X
a. increases when the price of Y increases b. increases when income increases c. decreases when the price of Y increases d. increases as the price of its substitute good increases e. decreases as the price of its substitute good decreases