Why was the Fed reluctant to rescue insolvent banks?
A) It thought it may lead to moral hazard.
B) It thought it may lead to adverse selection.
C) It thought they were still liquid.
D) It did not think they were insolvent.
A
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If there is an advancement in the technology used to produce a product, what is the likely effect it may have on the supply?
A) The company would not change its manufacturing. B) It would increase the supply. C) It would decrease the supply. D) More people would be needed to produce the product.
The cost of using a good for some specific period of time is called the ________ of the good
A) issue price B) rental price C) auction price D) market price
Ball found that the disinflation of the early 1980s in the United States had a sacrifice ratio of about
A) 0. B) 1. C) 2. D) 3.
The law of supply:
A. shows that the relationship between producer revenue and quantity supplied is negative. B. is reflected in a downsloping supply curve. C. reflects the income and substitution effects of a price change. D. reflects the amounts that producers want to offer at each price in a series of prices.