If a bank's liabilities are more sensitive to interest rate movements than are its assets, then
A) an increase in interest rates will reduce bank profits.
B) a decrease in interest rates will reduce bank profits.
C) interest rates changes will not impact bank profits.
D) an increase in interest rates will increase bank profits.
A
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To avoid an increase in the local property tax, Sullivan County, New York, proposed a 2 percent hotel tax, which presumably would be passed on to tourists. The hotel industry argued that the tax would hurt hotel business. They are really arguing that
a. tourist and convention demand is inelastic, so hotel bookings will decline. b. tourist and convention demand is very elastic, so hotel bookings will decline. c. they would prefer a property tax increase instead. d. it is unfair to tax people who do not live in the area.
If the U.S. imposed an import quota on sugar, then in the U.S
a. exports and imports would rise. b. exports and imports would fall. c. exports would rise and imports would fall. d. exports would fall and imports would rise.
For which of the following problems can well-designed public policy enhance economic efficiency?
a. both externalities and market power b. externalities, but not market power c. market power, but not externalities d. neither externalities nor market power
The World Bank defines ________ poverty as an income of less than $1.90 per day per person.
A. severe B. relentless C. extreme D. extraordinary