The argument that suggests that regulators balance the interests of firms, consumers, and legislators is called
A) the capture hypothesis.
B) the creative response theory.
C) the share-the-gains, share-the-pains theory.
D) the theory of optimal regulation.
Answer: C
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Which of the following is projected to rise from 8.3 percent of GDP in 2009 to about 13 percent by 2035 and about 20 percent in 2080?
a. Defense spending b. Medicare and Social Security spending c. interest payments on national debt d. infrastructure spending
In the circular flow model, households provide all of the following resources to firms except
a. labor b. money c. capital d. entrepreneurship e. land
An open market sale of U.S. Treasury securities by the Fed will cause the Fed's balance sheet to show:
A. an increase in the asset category of securities and the liability category of reserves. B. a decrease in the asset of securities and a decrease in the liability of reserves. C. no change in the size of the balance sheet, just the composition of assets will change from securities to cash. D. an increase in the liability of reserves.
If Tucker National Bank has $10,000 in excess reserves that it cannot lend:
A. the money multiplier increases. B. the money multiplier decreases. C. the money multiplier stays the same. D. checkable deposits increase.