An argument in favor of fractional-reserve banking is that
A) unregulated institutions would be riskier than regulated fractional-reserve banks.
B) it increases the precision of the central bank's control over the quantity of money.
C) a bank deposit is owned by the depositor, so the bank has no legal right to lend the deposit to someone else.
D) it decreases the risk of a bank running out of cash.
A
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 100 and that it is 150 in country B.) The migration of labor will:
A. Increase wages in country A and decrease wages in country B
B. Decrease wages in country A and decrease wages in country B
C. Decrease wages in country A and increase wages in country B
D. Increase wages in country A and increase wages in country B
Elasticity of demand is likely to be higher for less-expensive goods, other things being equal.
Answer the following statement true (T) or false (F)
Refer to the payoff matrix below, which ________ a prisoner's dilemma. If both countries cooperate, Home will choose Policy ________ and Foreign will choose Policy ________
A) is; 1; A B) is; 2; B C) is; 1; B D) is not; 2; B E) is not; 1; A
The government can safely take on more debt
a. as long as private firms are taking on more debt b. as long as the debt involves no interest payments c. if GDP is growing faster than the debt is growing d. if the interest rate is below 3 percent e. as long as the debt is growing by less than 3 percent per year