Paying a higher wage to attract and retain more productive workers is called:

a. wage discrimination.
b. signaling.
c. screening worker's skill set.
d. paying efficiency wages.


d

Economics

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As the housing bubble began to burst in 2006-2008, investors would only buy mortgage-backed securities at high yields to compensate for higher perceived default risk. As a result::

A) banks suffered significant capital losses as the value of their holdings of mortgage-backed securities declined B) funds available for mortgages increased C) bank profits rose as they earned higher interest on mortgages D) the price of mortgage-backed securities tended to rise due to the higher yields

Economics

States that restrict banks to having a single branch are said to require

A) mono banking. B) nonbank banking. C) unit banking. D) semi-banking.

Economics

Initially a bank has a required reserve ratio of 15 percent and no excess reserves. If $10,000 is deposited in the bank, then, ceteris paribus,

A. This bank can increase its loans by $1,500. B. This bank can increase its loans by $8,500. C. Total reserves will increase by $8,500. D. Required reserves will increase by $10,000.

Economics

The long-run Phillips curve is consistent with monetary neutrality implied by the classical dichotomy

a. True b. False Indicate whether the statement is true or false

Economics