A bank can lower its leverage risk by
A) issuing more stock.
B) buying more securities and making fewer loans.
C) more closely matching the average maturity of its assets and liabilities.
D) taking in fewer deposits and relying more in miscellaneous liabilities to raise funds.
C
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The above table gives real GDP and the aggregate expenditure schedule. Equilibrium real GDP is
A) $11 billion. B) $12 billion. C) $10 billion. D) $14 billion. E) $13 billion.
If John can produce 10 chairs or 20 lamps during a week while Mary can produce 12 chairs or 22 lamps in the same time, who has the absolute advantage in producing each good?
A) Mary in producing both goods B) John in producing both goods C) Mary in producing chairs, John in producing lamps D) John in producing chairs, Mary in producing lamps E) Both Mary and John in both goods
Which of the following is NOT an argument of non-activists?
A) private spending may show some instability but monetary or fiscal policy designed to stabilize it will just make things worse B) private spending is stable partly because consumption spending is based on permanent income C) even if prices are not completely flexible in the short-run, given time there is enough flexibility for the system to return to the natural level of real GNP D) it is true that monetary and fiscal policy have destabilizing in the past, but economic knowledge is now advanced enough to permit effective countercyclical policy
Those who are considered the transient poor are defined as those who spend:
A. two or more years in poverty. B. at least two consecutive months within a year in poverty. C. at least six consecutive months within a year in poverty. D. three or more years in poverty.