In the United States, which of the following safety precautions has the government NOT taken to reduce Bank failures?
A) implemented deposits insurance
B) bank reserve requirements
C) capital requirements and asset restrictions
D) required bank examination
E) forcibly closing poorly run banks
E
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If the price level in Japan increases more rapidly than the price level in Britain, we would expect
A) interest rates in Japan to lower than interest rates in Britain. B) the Japanese yen to depreciate against the British pound. C) the British pound to depreciate against the Japanese yen. D) Japanese productivity to have increased more rapidly than British productivity.
Beginning in the latter part of 1999, the Federal Reserve raised interest rates. What do you predict happened to the prices of bonds already in the market? How can you explain this behavior?
Market equilibrium maximizes the sum of:
A. total cost and total benefit. B. excess demand and excess supply. C. consumer surplus and producer surplus. D. marginal cost and marginal benefit.
When the demand for a good is inelastic, that good is likely to have:
A. many close complements. B. few close substitutes. C. few close complements. D. many close substitutes.