If people speculate that a run on one bank will cause a run on all banks in the financial system, and this speculation proves accurate, then the financial system would experience what is known as a
A) securitization meltdown. B) commodity crisis.
C) bank panic. D) institutional death spiral.
C
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Under flexible exchange rate, the response of an economy to a temporary fall in foreign demand for its exports is
A) the currency appreciates, and output falls. B) the currency depreciates, and output falls. C) the currency depreciates, and output increases. D) the currency depreciates, and output remains constant. E) the currency appreciates, and output increases.
________ in the foreign interest rate causes the demand for domestic assets to decrease and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
What phrase best describes medical care spending in the United States in 1998?
a. Total spending of more than $2 trillion represents 17 percent of GDP and approximately $8,000 per capita. b. Total spending of more than $1 trillion represents 14.8 percent of GDP and almost $6,000 per capita. c. Total spending of less than $1 trillion represents less than 13 percent of GDP and almost $3,000 per capita. d. Total spending is rising at double-digit rates and spending is soaring to over $5,000 per capita. e. Total spending is under control and represents a shrinking percentage of GDP.
Which of the following will cause aggregate private spending to decrease?
A) a reduction in government spending B) an increase in expected future interest rates C) an increase in expected future taxes D) all of the above E) none of the above