Suppose the Congress and president decreased the maximum annual contributions limits to retirement accounts and at the same time reduced the budget deficit. What would happen to the interest rate?
a. It would decrease.
b. It would increase.
c. It would stay the same.
d. It might do any of the above.
d
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A stress test of banks, such as that undertaken in the Spring of 2009, is designed to:
A) ensure that banks have followed proper accounting standards B) make sure that banks are properly managed C) gauge how well banks would fare if the economy worsens D) estimate the impact of a bank panic on the overall economy
The money supply in Econland is 1,000, and currency held by the public equals bank reserves. The desired reserve/deposit ratio is 0.25. Bank reserves equal ________.
A. 250 B. 200 C. 500 D. 800
In a Stackelberg oligopoly
A) the leader moves first, and the follower chooses its price in the second stage of the game.
B) the leader moves first, and the follower chooses its output in the second stage of the game.
C) both firms act simultaneously, but one chooses price and the other output level.
D) there is no Nash equilibrium.
Which statement about the effects of patents is TRUE?
A. Patents reduce the incentive to research and develop new products but also reduce competition in the market. B. Patents increase the incentive to research and develop new products but also increase monopoly power once the products are created. C. Patents increase the incentive to research and develop new products and also increase competition on the market. D. Patents reduce the incentive to research and develop new products but increase monopoly power once the products are created.