What are the three types of financial institutions that accept deposits that are part of the U.S. money supply? Briefly describe each of the three types of financial institutions
What will be an ideal response?
The three institutions are commercial banks, thrift institutions, and money market funds. Commercial banks are financial firms that accept deposits and make loans. There are about 8,600 commercial banks in the United States. Thrift institutions include savings and loan associations, savings banks, and credit unions. These firms also accept deposits and make loans. The last type of financial institution is money market funds. Money market funds obtain funds by selling shares and using the proceeds to buy assets such as U.S. Treasury bills.
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Must a rational choice always work out well? In other words, is it possible for someone to regret a rational decision?
What will be an ideal response?
Based on the research findings of David Galenson, Robert Heavner and others, what type of person would you expect to negotiate an indenture contract of the longest duration?
a. a 13 year-old illiterate male who went to New York b. a 22 year-old female weaver who went to Massachusetts c. a 20 year-old male unskilled worker who went to the West Indies d. a 21 year-old male blacksmith who went to the Pennsylvania
The unemployment compensation program:
a. makes recessions more severe. b. makes recession less severe. c. makes recessions more severe and inflationary episodes less severe. d. makes recessions less severe and inflationary episodes more severe. e. has no effect on the severity of recessions and inflationary episodes.
The answer is: 1/(1 - MPC). What is the question?
A) What is the marginal propensity to save? B) What is the efficiency wage model? C) What does consumption equal if the economy is in equilibrium? D) What is the multiplier? E) What does disposable income equal if the economy is in equilibrium?