A bank run is
A. the transfer of funds from one bank to another.
B. a situation when a bank borrows from the Fed's discount window.
C. a situation in which a bank borrows at the Federal funds rate.
D. a large-scale, panicky withdrawal of deposits from a bank.
Answer: D
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The proponents of ________ and ________ think that the Federal Reserve should adopt a constant monetary growth rule
A) new Keynesianism; the new classical model B) the real business cycle model; Marxism C) the monetarist model; the Keynesian model D) rational expectations; monetarism
Answer the following question on the basis of the data given for two regions, East and West, of a hypothetical world. East and West have the production possibilities for units of food and clothing given below.East Production PossibilitiesWest Production Possibilities ABCD ABCDFood241680Food4530150Clothing04812Clothing051015Assume that the East region had initially produced combination A and that the West region had produced combination C. If the two regions now specialize based on comparative advantage, the gains (in their combined output) from specialization are
A. 2 units of food and 4 units of clothing. B. 6 units of clothing and 2 units of food. C. 6 units of food and 2 units of clothing. D. 2 units of clothing and 4 units of food.
The purpose of antitrust policy is to encourage competition in an industry.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 25.2 below to answer the question(s) that follow.
Figure 25.2Refer to Figure 25.2. Suppose the money demand is currently at Point B. A movement to Point A could be caused by
A. a decrease in nominal income. B. an increase in the interest rate. C. an increase in nominal income. D. a decrease in the interest rate.