If interest rates increase to a very high level, people will most likely hold
A. more money in savings accounts and more cash.
B. less money in savings accounts and more cash.
C. less money in savings accounts and less cash.
D. more money in savings accounts and less cash.
Answer: D
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Changes in total factor productivity are plausible causes of business cycles because
A) of the welfare theorems. B) the U.S. government is following supply-side economic policy. C) the model matches many stylized facts. D) prices are countercyclical.
Which of the following factors explains why managers of government agencies (the public sector) have little incentive to operate efficiently?
a. It is relatively easy for voters to detect operational inefficiency in the public sector and do something to correct it. b. Public-sector managers face fierce competition. c. Public-sector managers have no fear of losses and bankruptcy when operational efficiency is not achieved. d. All of the above explain why government agencies have little incentive to be efficient.
Demand deposits $300 million Time deposits: Original maturity (less than 18 months): $200 million Original maturity (over 18 months): $400 million Use the information above to find the bank's required reserves.
What will be an ideal response?
Which of the following is not a condition for perfect competition to exist:
a) There are a small number of firms in the industry. b) All firms are producing the same product. c) It is easy to either enter or exit the industry. d) All of the above apply.