The net worth of a bank
a. determines the level of bank loans possible.
b. is determined by subtracting liabilities from assets.
c. is determined by subtracting assets from liabilities.
d. can never be a negative value.
b
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Recall the Application. The decrease in price of illegal drugs could be caused by either a(n) ________ in demand or a(n) ________ in supply of the drugs
A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease
A perfectly competitive industry must have a perfectly elastic long-run supply curve
a. True b. False Indicate whether the statement is true or false
The bulk of federal receipts come from
A) property taxes and personal income tax. B) personal income tax and from payroll taxes. C) corporate income taxes and personal income tax. D) personal income tax and property taxes.
If we compare the Canadian natural unemployment rate to the U.S. natural unemployment rate, we find that for most years since 1980
A) the Canadian rate is higher, possibly the result of higher unemployment benefits in the United States for most of those years. B) the U.S. rate is higher, possibly the result of greater job search within a larger country. C) they are essentially the same because we have a lot in common. D) the Canadian rate is higher, possibly the result of higher unemployment benefits in Canada for most of those years. E) The U.S. rate is higher, possibly the result of more structural change occurring in the United States.