According to Franco Modigliani, the MPC for young adults
a. is relatively high because they are busy building families and careers
b. is relatively low because their incomes are relatively small
c. is about the same as the MPCs for middle-aged adults
d. is lower than the MPCs for middle-aged adults
e. will remain constant over their life-cycles
A
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Use the following balance sheet for the ABC National Bank in answering the next question. Assume the required reserve ratio is 20 percent.AssetsLiabilities & Net WorthReserves$27,000 Checkable Deposits$110,000Loans50,000 Stock Shares200,000Securities33,000 Property200,000?Refer to the above data. This bank can safely expand its loans by a maximum of:
A. $5,000. B. $12,000. C. $7,000. D. $25,000.
A price ceiling is always a binding price control, whereas a price floor may be either binding or not binding
a. True b. False Indicate whether the statement is true or false
The convergence criteria included that a country:
A) should maintain a deficit of 6% of GDP. B) can have a debt level equal to 80% of GDP. C) can have a debt level equal to 60% of GDP. D) should maintain a deficit lower than 1% of GDP.
The government has bailed out homeowners who are in danger of foreclosure. Furthermore, future homeowners may deduce that the government will again bail them out in the case of future economic turmoil. The government inadvertently has created what is known as:
A. moral hazard. B. herding. C. deleveraging. D. the law of diminishing control.