Recall the Application about how policymakers use stress tests to protect the financial system to answer the following question(s).According to this Application, if a bank does NOT pass the test, the Fed can:
A. prevent the bank from paying out dividends to its shareholders.
B. make the bank raise additional capital from the financial markets.
C. force the bank to close.
D. Both prevent the bank from paying out dividends to its shareholders and make the bank raise additional capital from the financial markets are correct.
Answer: D
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The marginal rate of substitution ____ as one moves downward along the indifference curve
a. increase b. remains constant c. decreases d. increases and then decreases
If the MPC = 1, the spending multiplier is:
A. infinite. B. zero. C. 1. D. 10.
A merger between two firms that have a supplier-purchaser relationship is:
A. horizontal. B. vertical. C. conglomerate. D. illegal.
In this graph, consumption is at the level of 2,500 when disposable income is
A. 0.
B. 1000.
C. 2000.
D. 3000.