The basic equation for a bank's balance sheet is ____
a. assets = liabilities ? net worth
b. net worth = assets ? liabilities
c. net worth = assets + liabilities
d. liabilities = net worth + assets
b
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A combination of recession and inflation is called
A) a recession. B) an expansion. C) a business cycle. D) stagflation. E) depression.
Social forces:
a. affect the price mechanism through cultural norms. b. affect the price mechanism through the educational system. c. affect the price mechanism through scarcity. d. do not affect the price mechanism.
When an increase in government purchases causes firms to purchase additional plant and equipment, we have seen a demonstration of
A. the multiplier effect. B. supply-side economics. C. the crowding-out effect. D. the investment accelerator. E. none of these answers.
A one-time rise in the price level is:
A. not inflation. B. inflation if that rise is above 10 percent. C. inflation if that rise is above 5 percent. D. inflation if that rise is above 15 percent.