The main purpose of federal deposit insurance is to
A. permit the Federal Reserve to control the money supply.
B. prevent borrowers who are likely to default on their loans from getting loans in the first place.
C. prevent bank panics.
D. put savings and loan associations on an equal competitive footing with commercial banks.
C. prevent bank panics.
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If the unemployment rate in an economy is 12%, of which 5% is cyclical unemployment, 4% is structural unemployment, and 3% is frictional unemployment, what is the natural rate of unemployment?
What will be an ideal response?
Unlike Germany, Japan has
A) a suppressed corporate debt market. B) laws against banks holding corporate stock. C) a large stock market. D) close ties between a firm and a single bank.
Consider Figure 8.9. Choosing a low price is:
A. a dominant strategy for David but not for Becky. B. a dominant strategy for Becky but not for David. C. a dominant strategy for both David and Becky. D. not a dominant strategy for either David or Becky.
John Maynard Keynes sought to solve the economic problem of the Great Depression, which was the coexistence of
A. high production and high inflation. B. low production and low unemployment. C. low production and high unemployment. D. high production and low inflation.