Banks responded to disintermediation by
A) supporting the elimination of interest rate regulations, enabling them to better compete for funds.
B) opposing the elimination of interest rate regulations, as this would increase their cost of funds.
C) demanding that interest rate regulations be imposed on money market mutual funds.
D) supporting the elimination of interest rate regulations, as this would reduce their cost of funds.
A
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If there is an increase in technology, the long-run aggregate supply curve shifts rightward, but the short-run aggregate supply curve does not shift
Indicate whether the statement is true or false
When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in
A. the supply of this wine. B. the demand for this wine. C. the quantity of this wine demanded. D. the quantity of this wine supplied.
A medical student's internship at a local hospital is an example of
A. economic income. B. a compensating wage differential. C. an investment in human capital. D. income redistribution.
In the rational expectations view, the best approach to fiscal policy is for the government to:
A. Cut taxes B. Balance its budget C. Eliminate transfer payments D. Fix government spending