Systemic risks inhere mainly in the largest financial institutions.
Answer the following statement true (T) or false (F)
True
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The Federal Reserve econometric model predicts that a 2 percent increase in the money supply will increase real GDP after one year by
A) 1 percent. B) 2.5 percent. C) 2 percent. D) 10 percent.
Under a fixed exchange rate system, at high domestic real interest rates the demand for domestic currency ________, so the central bank ________ foreign-exchange reserves
A) increases; acquires B) increases; loses C) decreases; acquires D) decreases; loses
When observing economic growth and literacy rates, it is clear that: a. economic growth causes higher literacy rates
b. economic growth may be a consequence of improved education. c. improved levels of education may be the result of increasing economic growth. d. all of the above are likely to be true.
Pleasure boaters enjoy the use of waterways, but sometimes run into problems and need rescue. Coast Guard boats, supported by tax revenue, are often used for rescue. Is it likely that there will be an efficient amount of boating and rescuing?