Commercial banks act as middlemen between savers and borrowers, therefore they are called _____
a. lenders of the last resort
b. financial intermediaries
c. banker's banks
d. thrift institutions
e. profitable institutions
b
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If the price elasticity of demand for radios is 2.5 (dropping the minus sign), then a 50 percent reduction in the price of radios will lead to
A. the sale of 200 additional radios. B. the sale of 125 percent more radios than before. C. the sale of 150 percent more radios than before. D. the sale of 25 percent more radios than before.
Explain what is meant by "investment in children," describing the goals and methods of the parents
What will be an ideal response?
Increased government spending is an example of:
A. expansionary fiscal policy. B. contractionary fiscal policy. C. expansionary monetary policy. D. contractionary monetary policy.
Which of the following is true of a proportional tax rate? a. It is a tax rate that remains constant as the tax base changes
b. It is a tax rate that decreases as the tax base increases. c. It is a tax rate that increases as the tax base increases. d. It is a tax rate that increases as the tax base increases and then decreases as the tax base decreases.