A banker motivated by profit maximization may make decisions that destabilize the banking system.
Answer the following statement true (T) or false (F)
True
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Use the following graph to answer the next question.
The graph shows the supply and demand for money where Dm1, Dm2, and Dm3 represent different demands for money and Sm1, Sm2, and Sm3 represent different levels of the money supply. The initial equilibrium point is A. What will be the new equilibrium point following a decrease in the money supply?
A. F B. B C. E D. I
If a decrease in the demand for corn leads to economic losses for corn farmers,
a. some existing corn farmers will exit the industry. b. the price of corn will remain low in the long run due to the economic losses. c. the suppliers of corn will suffer long-run economic losses. d. all of the above are correct.
Who is most likely to be poor?
A. Someone over age 65 B. A Hispanic American C. A black person D. Someone living in a female-headed household with children
Consumers express self-interest when they:
A. Seek the lowest price for a product B. Reduce business losses C. Collect economic profits D. Exclude others in their thinking