The real interest rate is the interest rate corrected for inflation
a. True
b. False
Indicate whether the statement is true or false
True
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Points on the PPF are all
A) unattainable and have fully employed resources. B) free lunches. C) inefficient. D) attainable and have some unemployed resources. E) production efficient.
Price ceilings are typically imposed to benefit buyers
a. True b. False Indicate whether the statement is true or false
How does Federal Deposit Insurance Corporation (FDIC) cause moral hazard in the banking industry?
A. Depositors do not evaluate the health of a bank when they make a deposit because they are assured that they get their money back. B. Money managers of a bank will make more risky loans because they know that if their investments fail, the government will reimburse the depositors. C. The Federal Reserve (our central bank) does not monitor banks because they know the FDIC covers all deposits. D. Depositors do not evaluate the health of a bank when they make a deposit because they are assured that they get their money back and Money managers of a bank will make more risky loans because they know that if their investments fail, the government will reimburse the depositors are both correct.
According to the text, the 17 countries with high degrees of economic freedom
A. account for less than 20 percent of total world output. B. account for 80 percent of total world output. C. have low productivity. D. have the weakest economies.