What was the primary reason that Congress initiated deposit insurance in the 1930s?
A) protect the deposits of individual savers
B) provide more of an incentive for depositors to monitor bank activities
C) reduce systemic risk to the financial system
D) reduce information problems in the banking system
A
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In the money market, how is the adjustment to equilibrium brought about in the short run and in the long run?
What will be an ideal response?
If domestic savings was 2 billion last year and domestic investment was -12 billion, then the current account balance is
A) 10 billion. B) -10 billion. C) 14 billion. D) -24 billion.
Monetarists consider timing variations in the relationship between money supply changes and income changes to be
A) a fundamental problem of counter-cyclical monetary policy. B) inconsequential relative to the problem of instability in the velocity of money. C) a fundamental long-run problem but not a significant problem in the short run. D) offset by predictable changes in the money multiplier.
Unions contribute to
a. frictional but not structural unemployment. b. structural but not frictional unemployment. c. both frictional and structural unemployment. d. neither frictional nor structural unemployment.