Before the 1970s, bankers were happy with interest-rate ceilings because those ceilings:
a. reduced interest-rate competition for deposits among banks.
b. guaranteed them high profits
c. guaranteed them a minimum profit.
d. enabled them to expand into other lines of commerce.
e. allowed them to hold corporate stock.
a
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Suppose that the Japanese yen appreciates significantly at some point, thus making Japanese imports more expensive. Japanese exporters may lower their profit margins to reduce the effect of the yen appreciation on U.S
importers, producing a phenomenon known as A) the J-curve. B) the absorption effect. C) pricing to market. D) international reserves compliance.
Which statement is false?
A. Looking at our trading pattern with Japan, one might reach the conclusion that we were an economic colony of Japan. B. Until the 1990s, the United States was the prime exporter of consumer electronics products, such as TVs, cameras and DVD players. C. In 1984 U.S. trade deficits first passed the $100 billion mark. D. The last year the U.S. ran a trade surplus was 1975.
According to classical economists, a decrease in the rate of interest will
A. increase investment. B. increase consumer saving. C. increase the inflation rate. D. increase unemployment.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point A to Point B, ________ additional OLED TVs could be produced when the production of LCD TVs is reduced by 30.
A. exactly 20 B. more than 20 C. fewer than 20 D. exactly 90