Very high inflation can arise when huge budget deficits are financed by the government printing its domestic currency. Which country experienced inflation of several million percent in 2008 as a result of this problem?
a. Myanmar
b. Ukraine
c. Zimbabwe
d. Belarus
c. Zimbabwe
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Consider two banks: Bank A and Bank B. Bank A has total assets worth $50,000 and total liabilities worth $24,000. Conversely, Bank B has total assets worth $100,000 and total liabilities worth $90,000
Given this information, which of the two banks is more prone to bank runs and why?
As this chapter explains, the movie A Beautiful Mind is a biography of John Nash
There is a scene in the movie where the John Nash character (played by Russell Crowe) is at a bar with several friends and has the insight that becomes what we now call a Nash equilibrium. Here is a game that summarizes what happened in that scene. Several women enter the bar; one of the women is very beautiful. All of the men would prefer to dance with the beautiful woman. They know that if one man asks the beautiful woman to dance that she will accept but that if two of the men ask her to dance she will refuse to dance with either of them. The John Nash character argues that none of the men should ask the beautiful woman to dance but should instead ask the other women. Do you think the director of this movie has studied game theory?
Claire bought a new TV, and the old one sits in her basement untouched. If Claire were rational, what would she do with the old TV?
A. Throw it away because she doesn't really value it anymore. B. Sell it for its market value, because that is the opportunity cost of having it sit in her basement. C. Give it away, because it is worth more to someone else than Claire. D. Either sell it for the value of her new TV or keep it.
QN=81 (17792) When the consumer price index rises, the typical family
a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d. can offset the effects of rising prices by saving more.