The number of banks in the U.S. has fallen almost by half in the past twenty years or so. Was this the result of bank failures or were some due to another cause? Explain.
What will be an ideal response?
While some banks have certainly failed over the past 20 years, the major cause of the reduction in the number of banks has been bank mergers that have been fueled by the repeal of laws prohibiting branch banking and interstate branching. As a result, many banks wishing to do business in other states have been able to simply purchase banks in other states reducing the number of banks.
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What determines the position and shape of a society’s production possibilities frontier?
A. The physical resources of that society B. The skills of the workforce C. The level of technology of the society D. The amount of factories in the society E. All of the responses are correct.
When the Fed raises the federal funds rate, the exchange rate ________ and net exports ________
A) increases; decreases B) does not change; decreases C) does not change; does not change D) decreases; decreases E) increases; increases
What is rent seeking and how does it influence the inefficiency of monopoly?
What will be an ideal response?
The average percentage markup in the economy is
a. relatively stable, but the price level may not be b. relatively stable, causing the price level to also be relatively stable c. relatively unstable, despite which the price level remains relatively stable d. relatively unstable, causing the price level to also be relatively unstable e. determined by the unit costs of production