A bank run occurs when:
A) a bank experiences an extraordinarily large volume of withdrawals.
B) a bank sells its assets to its own stockholders.
C) the central monetary authority regulates the functioning of banks.
D) a bank's assets exceeds its liabilities.
A
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When it comes to pollution problems, the polluter and the victim can bargain to arrive at the outcome desired by the benevolent social planner
Indicate whether the statement is true or false
Use the idea of the circular flow diagram to explain why the value of production equals total income equals total expenditure
What will be an ideal response?
An example of how GNP accounts for services provided by foreign-owned capital (and GDP does not) is
A) earnings of a Spanish factory with British owners counts only in Spain's GDP. B) earnings of a Spanish factory with British owners counts only in Britain's GNP. C) earnings of a Spanish factory counts in Spain's GNP but are part of Britain's GDP. D) earnings of a Spanish factory counts in Spain's GDP but are part of Britain's GNP. E) earnings of a Spanish factory counts in Spain's GNP but not in Britain's GDP or GNP.
According to the Taylor rule, if there is a recessionary gap of 3 percent of potential output and inflation is 4 percent, what real interest rate will the Fed set?
A. 3 percent B. 1.5 percent C. 2 percent D. 2.5 percent