Which statement is false?
A. Most savings and loan associations were locked into low-interest-rate mortgages in the 1950s and 1960s.
B. To get a bank charter, you need to demonstrate that your community needs a bank or an additional bank.
C. Nearly all banks today are regulated by both the Federal Reserve and the FDIC.
D. The FDIC would rather pay off depositors than be forced to find another bank to take over a failing institution.
E. Money is created when someone takes out a bank loan.
D. The FDIC would rather pay off depositors than be forced to find another bank to take over a failing institution.
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If both the supply of labor and the demand for labor increase, then
A) potential GDP decreases. B) potential GDP increases. C) full employment decreases. D) the impact on potential GDP is uncertain
Are checks and credit cards money? Explain why or why not
What will be an ideal response?
Yi and Avik are both economists. Yi thinks that taxing consumption, rather than income, would result in higher household saving because income that is saved would not be taxed. Avik does not think that household saving would respond much to a change in the tax laws. In this example, Yi and Avik
a. hold different normative views about the tax system. b. disagree about the validity of a positive theory. c. have a fundamental misunderstanding of the tax system. d. More than one of the above is correct.
Suppose that differences in skills explain part of the difference in wages by race. Wage differences arising from skill differences:
A. may result from past discrimination in access to education. B. are not attributable to present or past discrimination. C. will disappear when labor markets are in equilibrium. D. are always classified as racial discrimination.