Due to the private nature of bank ownership, there is often a difference between bankers' goals and macroeconomic objectives
a. True
b. False
Indicate whether the statement is true or false
True
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Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution. Bill has the skills necessary to find a new job, so as Bill searches for work he is best considered an example of
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) a discouraged worker.
In an oligopoly
A) firms will attempt to differentiate their products. B) the market demand curve is kinked. C) firms will match all price decreases of another but will not match price increases. D) all of the above
If the price of labor falls relative to the price of capital, and as a result the quantity of capital employed decreases, then it can be concluded that:
A. The substitution effect is greater than the output effect B. The output effect is greater than the substitution effect C. The income effect is greater than the output effect D. Labor cannot be easily substituted for capital
What is the level of private investment in equilibrium? Write an equation for the investment demand curve?
Consider the closed economy of country A where KI = 0. In year 2009, government expenditure (G) is $300 billion, the total tax collected (T) is $900 billion and tax being transferred (TR) is $200 billion. The loanable fund market is currently in equilibrium, and the total demand equation (including SG) is DLF: r =0.04 - 0.000025Q, where r is the real interest rate, and that private saving, SP, equals $800 billion at equilibrium