Federal deposit insurance may encourage banks to take on riskier loans that could lead to a greater incidence of bank failures
Indicate whether the statement is true or false
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According to the historical record of inflation since the 1300s, the inflation rate
A) became highest in the twentieth century. B) was at its lowest after Columbus arrived to America. C) was at its highest during the Industrial Revolution. D) has always been consistently high. E) was higher in the 1300s than in the 1900s.
When analyzing the housing market, the supply curve
a. will be upward sloping because the higher the price of a house the more that will exist b. will be horizontal to illustrate that the supply of housing is a stock variable c. will be downward sloping; that is what went wrong with the housing market d. will be vertical to illustrate that the supply of housing is a stock variable e. could be horizontal, vertical or upward sloping depending upon the housing market in question
GDP has nothing to say about the level of ________________ in society.
a. spending b. inequality c. technology d. consistency
The quantity of reserves demanded decreases as the federal funds rate rises because
a. people want more liquid assets as the federal funds rate rises. b. the price of bonds rise as the federal funds rate rises. c. the opportunity cost of holding excess reserves increases as the federal funds rate rises. d. people want more money to invest as the federal funds rate rises.