Under fractional banking, when a bank lends to a customer
a. the money supply increases.
b. bank profitability is decreased.
c. the bank is protected from a run.
d. bank credit decreases.
a
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The productivity of workers in an economy is high if:
A) the economy has a negative rate of inflation. B) the economy has low capital stock. C) the economy has high levels of human capital. D) the economy has a large working age population.
If price were set by the government at $3, there would be a price _____________, that would cause a ___________ of _______ units.
A. floor; surplus; 12
B. floor; shortage; 12
C. ceiling; surplus; 14
D. ceiling; shortage; 14
Suppose that the government imposes a tax on producers equal to the value of the externalities imposed by the good or service. A ______________ elastic demand curve means consumers are less responsive to changes in price and the tax burden will fall more heavily on ______________.
a. more; government b. more; consumers c. less; producers d. less; consumers e. None of the above.
When there is a shortage of a product in an unregulated market, there is a tendency for
A. quantity supplied to decrease. B. price to fall. C. quantity demanded to increase. D. price to rise.