What percentage of bank assets were in security holdings in 2012?
A) 5%
B) 13%
C) 22%
D) 37%
C
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What are the steps involved in optimization in levels? If option A has a cost of $5 and provides a benefit of $8, and option B has a cost of $10 and provides a benefit of $15, which of the two projects is optimal?
What will be an ideal response?
Refer to Figure 27-11. If government purchases increase by $100 billion and lead to an ultimate increase in aggregate demand as shown in the graph, the difference in real GDP between point A and point B will be
A) less than $100 billion. B) $100 billion. C) more than $100 billion. D) There is insufficient information given here to draw a conclusion.
Suppose that in 2013, all prices in the economy increased by 50% and that all wages and salaries also increased by 50%. In 2013, you were
A) better off than you were in 2012 as your salary was higher than it was in 2012 and you could buy more goods and services. B) worse off than you were in 2012 as you could no longer afford to buy as many goods and services. C) no better off or worse off than you were in 2012 as the purchasing power of your salary remained the same. D) The purchasing power of your salary cannot be determined with the given information, so you cannot determine if you were better off or worse off in 2013 than in 2012.
The adoption of capital controls makes
A) everyone in the domestic economy better off. B) some domestic residents better off and some worse off, although on average welfare increases. C) some domestic residents better off and some worse off, although on average welfare decreases. D) everyone in the domestic economy worse off.