A default happens when a:
A. borrower fails to pay back a loan according to the agreed-upon terms.
B. lender fails to allot money according to the terms set by the government.
C. borrow pays back a loan early.
D. bank fails to have enough cash on hand to give all depositors their money.
Answer: A
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Which of the following would be the least likely to increase total factor productivity?
A) private investment in research and development B) increases in human capital C) the establishment of strong property rights D) increases in the population growth rate
All of the following describe the conflict between divisions EXCEPT
a. some activities across divisions benefit from coordination b. managers of profit centers care too little about the effects of their decisions on other divisions c. managers are rewarded only for how well their own division is run d. A divisional manager does not have authority to run her division efficiently
Suppose an American worker can make 100 chairs or catch 900 fish per day. On the other hand, a Chilean worker, can make 40 chairs or catch 400 fish per day. The United States has an absolute advantage in the production of both fish and chairs. This means that the United States:
A. should produce only chairs and trade with Chile to get fish. B. should produce only fish and trade with Chile to get chairs. C. should take advantage of Chile by trading with them. D. can produce more fish and chairs than Chile given the same amount of workers.
If the MPC is .50 and the equilibrium GDP is $40 billion below the full-employment GDP, then the size of the recessionary expenditure gap is:
A. $40 billion. B. $20 billion. C. $60 billion. D. $80 billion.