Paradoxically, when the economy most needs injections of money, the economic conditions are such that
a. borrowers are particularly eager to go to banks for loans
b. borrowers are most reluctant to borrow (demand loans) from banks
c. the FDIC will insist that banks raise the interest rate they charge borrowers
d. the FSLIC and FDIC will insist that banks lower the interest rate they charge borrowers
e. the Federal Reserve will print less money
B
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________.
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Global warming, which causes unfavorable climatic changes due to the burning of fossil fuels, would be an example of a(n): a. positive externality
b. negative externality. c. internalized externality. d. Coase externality.
The short-run supply curve of a perfectly competitive firm
a. intersects the minimum point of its short-run average total cost curve but not its short-run average variable cost curve. b. intersects the minimum point of its short-run average variable cost curve but not its short-run average total cost curve. c. intersects the minimum point of both its short-run average variable cost and its short-run average total cost curves. d. intersects the minimum point of its short-run average total cost curve and may or may not intersect the minimum point of its short-run average variable cost curve.
In Figure 28.1, emission fees will
A. Shift the marginal cost of production to the right. B. Raise marginal revenues. C. Increase the marginal cost of production. D. Reduce external benefits.