Risk-based deposit insurance premiums have recently been __________ and this is expected to __________ the moral hazard problem of deposit insurance
A) abolished; alleviate
B) abolished; worsen
C) established; alleviate
D) established; worsen
C
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Refer to Table 9-12. Which country has a comparative advantage in producing swords?
A) Estonia B) Morocco C) both countries D) neither country
Suppose the economy's production function is Y = A(300N – N2). The marginal product of labor is MPN = A(300 - 2N). Suppose that A = 10. The supply of labor is NS = 0.05w + 0.005G
(a) If G is 26,000, what are the real wage, employment, and output? (b) If G rises to 26,400, what are the real wage, employment, and output? (c) If G falls to 25,600, what are the real wage, employment, and output? (d) In cases (b) and (c), what is the government purchases multiplier; that is, what is the change in output divided by the change in government purchases?
The explanations for the slopes of the aggregate demand and short-run aggregate supply curves are the same as the explanations for the slopes of demand and supply curves for specific goods and services
a. True b. False Indicate whether the statement is true or false
The highly centralized economies of North Korea and Cuba are ______ economies.
a. command b. mixed c. market d. traditional