If a bank has $50 million in rate-sensitive assets and $20 million in rate-sensitive liabilities then
A) an increase in interest rates will reduce bank profits.
B) a decrease in interest rates will reduce bank profits.
C) interest rate changes will not impact bank profits.
D) a decrease in interest rates will increase bank profits.
B
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If an economist wants to make a prediction about the effects of a change in disposable income on the change in consumption spending based on historical data, she must assume that
A. the future will closely resemble the past. B. consumption and disposable income will be negatively related. C. the consumption function will have a downward slope. D. as disposable income increases, consumer spending will remain constant.
If hiring a minority would drive away customers, then discriminating against that minority might increase profits for the business that is doing the hiring
Indicate whether the statement is true or false
The portion of ________ that a bank does not loan out or spend on securities is known as ________
A) deposits; reserves B) loans; reserves C) deposits; securities D) loans; securities
All of the following are examples of positive statements EXCEPT:
A. Tax revenues increase as output per person increases. B. High rates of economic growth are undesirable because of the destruction caused to the environment. C. Growth in an economy generates a budget surplus. D. As output per person increases access to consumer goods increases.