How does macroprudential regulation relate to conventional measures to prevent fraud and promote transparency?
What will be an ideal response?
Conventional measures address the danger that particular firms and individuals might engage in behaviors contrary to the interests of others. Macroprudential regulation addresses the danger that behaviors that seem benign in isolation may, in aggregate, threaten the stability of the financial system. Macroprudential regulators monitor systemic conditions and trends. If they conclude that a systemic threat is emerging, they rely heavily on the ability of conventional regulators to adjust and to tighten their oversight to discourage the relevant behaviors.
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Most app developers have adopted the business model of
A) charging a between $1.99 and $2.99 for their apps to be downloaded. B) allowing their apps to be downloaded and used for free, while trying to still earn money from users. C) charging a small fee for their apps to be downloaded. D) allowing their apps to be downloaded to one device for free, but charging a high price for the apps to be downloaded to additional devices.
Suppose the price levels in an economy in four successive years are 100, 120, 133, and 140 . Which of the following is true in such a case? a. The economy is experiencing hyperinflation
b. The economy is experiencing deflation. c. The economy is experiencing inflation. d. The economy is experiencing increasing inflation. e. The economy is experiencing disinflation.
Which of the following will most likely cause an outward shift in the production possibilities curve?
a. a reduction in the man-made productive resources available to the economy as the result of a decline in investment b. an increase in government payments to farmers for taking land out of production c. an increase from 40 to 50 hours in the average number of hours worked per week d. None of the above would cause an outward shift in the production possibilities curve.
A government action that can help correct positive externalities is
A) a tax on producers of the good that provides external benefits. B) a subsidy to consumers of the good that provides external benefits. C) an effluent fee charged to producers of the good that provides external benefits. D) regulations aimed at reduced production by sellers of the good that provides external benefits.