During a period of economic depression, such as has existed for a long period in Japan, a profit-oriented bank will act in such a way that
A. dampens the fluctuations.
B. makes the depression worse.
C. is neutral with respect to the fluctuations.
D. is counter-cyclical and stabilizing.
Answer: B
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Prudential regulation ________
A) requires that banks maintain the confidentiality of loan applications B) is administered by a specific insurance company C) is necessitated by the government's safety net for the banking system D) is an effective substitute for prudential supervision
When the price of one good changes, while the prices of all others stay the same:
A. the change in relative prices is reflected in a change in the slope of the budget constraint. B. the change in relative prices can be thought of as a change in the opportunity costs of each good. C. the change in relative prices is reflected in a change in the marginal utility per dollar spent on each good. D. All of these statements are true.
Consumption is spending by: a. households on goods and services
b. households on capital goods and inventories. c. businesses on corporate social responsibility initiatives. d. government on subsidizing consumption goods.
Factor mobility aids in economic development when
A. There is an increase in both outsourcing and insourcing. B. A region suffers a natural disaster such as an earthquake or tornado. C. A technological advance causes some firms to go out of business. D. All of the choices are correct.