The process in which financial institutions accept savings from businesses, households, and governments and lend the funds to other businesses, households, and governments is called
A) central banking system.
B) financial intermediation.
C) moral hazard.
D) adverse selection.
B
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The financial market shock which occurred during the recession of 2007-2009 increased the default-risk premium, and the housing shock which occurred during the recession of 2007-2009 reduced wealth and residential construction
These two events would result in A) a movement up along the Phillips curve. B) a movement down along the Phillips curve. C) an upward shift of the Phillips curve. D) a downward shift of the Phillips curve.
Assume that the current market price is below the market clearing level. We would expect:
A) a surplus to accumulate. B) downward pressure on the current market price. C) upward pressure on the current market price. D) lower production during the next time period.
The United States has run large trade deficits with most of the world since the early
a. 1940s b. 1960s c. 1970s d. 1980s e. 1990s
Refer to the graph shown. Assume the market is initially in equilibrium at point b in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from S0 to S1. The lost consumer surplus of this tax is equal to the area:
A. cdb. B. cab. C. P2P1bc. D. P1(P2 ? t)ab.