The government is most involved in economic decisions in a country with a ______ economy.
a. mixed
b. command
c. market
d. traditional
b. command
You might also like to view...
A bank that wants to monitor the check payment practices of its commercial borrowers, so that moral hazard can be reduced, will require borrowers to
A) place a bank officer on their board of directors. B) place a corporate officer on the bank's board of directors. C) keep compensating balances in a checking account at the bank. D) purchase the bank's CDs.
The simplified expenditure multiplier:
A. grows larger as the marginal propensity to consume increases. B. is calculated as 1/(1 ? MP). C. has a positive value. D. All of these are true.
One reason why banks might increase their reserve-deposit ratio above the minimum level in times of economic uncertainty is that banks:
A. may find only limited lending opportunities that seem sufficiently safe. B. may have insufficient required reserves. C. are initiating quantitative easing. D. are most profitable when new loans are issued.
A tax imposed by a government on imported goods or services is a:
A) quota. B) tariff. C) nontariff barrier. D) trade embargo.