A bank lending depositors' money to a local business and a pension fund investing contributions in shares of a company are similar financial activities in that
A) both involve the use of financial markets.
B) both involve funds being channeled from savers to borrowers through financial intermediaries.
C) both involve a reduction in the overall level of liquidity in the financial system.
D) both involve in an increase in the overall level of risk in the financial system.
B
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Suppose the average productivity of workers in Country A is equal to that of workers in Country B. If Country A has higher total efficiency units of labor than Country B, it implies that ________
A) Country B has a larger supply of workers B) Country A has a larger supply of workers C) Country B has a larger stock of capital D) Country A has a larger stock of capital
A decline in money supply will lead to a(n) ________ if nominal wages are rigid
A) increase in labor demand B) fall in real wages C) fall in labor demand D) increase in real output
How much food production would Calvin lose in a day in order to produce 2 yards of cloth?
a. 2 pounds
b. 1-1/2 pounds
c. 1 pounds
d. 1/2 pound
Refer to the graph shown. Total fixed cost of producing Q* is represented by:
A. area ABEF. B. area ACDF. C. area 0Q*AF. D. cannot be determined.