A banker motivated by profit maximization may make decisions that destabilize the banking system
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Table 18-3. Given the following exchange rates in the above table, what are the exchange rates stated as U.S. dollars per Danish krone and U.S. dollars per EU euro respectively?
A) 0.02 dollars per krone and 0.70 dollars per euro B) 0.05 dollars per krone and 1.30 dollars per euro C) 2.00 dollars per krone and 7.14 dollars per euro D) 0.20 dollars per krone and 1.43 dollars per euro
If a firm in a perfectly competitive market faces a market price of $2, and it decides to increase its production from 2,000 units to 4,000 units, the firm's marginal revenue:
A. will increase from $4,000 to $8,000. B. will stay the same. C. will decrease from $8,000 to $4,000. D. None of these is true.
A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies
a. enhance equality. b. enhance efficiency. c. increase the reward for working hard. d. All of the above are correct.
The government would want the economy to contract when real GDP is
A. Above potential GDP and the price level is falling B. Below potential GDP in the price level is falling C. Above potential GDP and the price level is rising