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

Economics

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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.

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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.

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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.

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