Banks in the Diamond-Dybvig model can offer depositors increased liquidity because
A) both individual depositors' liquidity needs and average depositor liquidity needs are predictable.
B) while individual depositors' liquidity needs are unpredictable, average depositor liquidity needs are predictable.
C) while individual depositors' liquidity needs are predictable, average depositor liquidity needs are unpredictable.
D) neither individual depositors' liquidity needs nor average depositor liquidity needs are predictable.
B
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In the real business cycle model, an increase in current total factor productivity leads to
A) an increase in investment. B) a decrease in investment. C) no change in investment. D) an ambiguous response of investment.
In game theory, an example of a payoff could be:
A. monetary gains made by a player. B. being the first mover in a game. C. sharing information with a select few that others aren't privy to. D. giving an advantage to only one player.
Use the following graphs to answer the next question.
In the graphs, the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The interest rate in the economy is 4%. What should the Fed do to achieve a noninflationary, full-employment level of real GDP?
A. Decrease the money supply from $225 billion to $150 billion. B. Increase the money supply from $150 billion to $225 billion. C. Increase the money supply from $75 billion to $150 billion. D. Make no change in the money supply.
Which of the following occupations is not among the ten projected fastest-growing U.S. occupations in terms of percentage increases?
A. School teachers. B. Biomedical engineers. C. Physical therapist assistants. D. Personal care aides.