The amount of loans that a bank can create is limited by
A) a law enacted by Congress.
B) the bank's excess reserves.
C) a directive from the Federal Reserve System, which takes into account the bank's financial stability.
D) the real interest rate.
E) the bank's government securities.
B
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The ability to share work and share risk is an advantage for
A) partnerships. B) sole proprietorships and partnerships. C) sole proprietorships. D) sole proprietorships and corporations
What will happen to a country that fixes the price of foreign exchange below equilibrium?
The central prediction of the Hecksher-Ohlin theorem is that
a) international goods prices equalize under foreign trade b) comparative advantages depend on the abundance of factor inputs c) international trade disperses technology, speeding convergence d) all nations move beyond their production possibilities sets with free trade e) exchange rates adjust to ensure purchasing power parity
If demand decreases and supply is unchanged, then the equilibrium price ____ and the equilibrium quantity ____. Question 11 options:
A. does not change; does not change B. rises; decreases C. falls; decreases D. falls; increases E. rises; increases