Claims that economic agents have against banks are known as:
A) assets. B) capital. C) deposits. D) liabilities.
D
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Refer to Figure 21-6. The market is in equilibrium. If the government budget deficit rises, which of the following would you expect to see?
A) The quantity of loanable funds demanded by firms will fall below $120 million. B) The interest rate will fall below 4 percent. C) The quantity of loanable funds demanded by firms will rise above $120 million. D) The budget deficit will have no impact on the quantity of loanable funds demanded by firms.
In a model with money neutrality, how much should the money supply be increased to obtain a 1% increase in real output?
A) -1% B) between 0 and 1% C) 1% D) It cannot be done.
What two things must governments be able to do to regulate pollution and create a market for pollution?
a. easily identify polluters and monitor their behavior b. easily identify polluters and what pollution they are putting into the air and water c. easily identify polluters and know their cost structure to charge them accordingly d. none of the above
Differentiate between the current account balance and the capital account balance.
What will be an ideal response?