Which of the following reforms would reduce the likelihood of a future financial crisis?
a. increased regulations that would make it more difficult for lenders to foreclose on borrowers who are delinquent on mortgage payments
b. expansion of government-sponsored lending in order to make loanable funds more readily available to sub-prime borrowers
c. institutional changes that would strengthen the property rights of shareholders and provide financial managers with a stronger incentive to pursue long-run objectives
d. frequent regulatory changes in order to search for and find the combination that would be most effective
C
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In September, buyers of silver expect that the price of silver will rise in October. What happens in the silver market in September, holding all else constant?
A) The quantity demanded increases. B) The quantity demanded decreases. C) The demand curve shifts to the right. D) The demand curve shifts to the left.
Which form of business organization has the advantage of being a legal person in itself?
a. sole proprietorship b. partnership c. corporation d. oligopoly
International factor flows tend to lower incomes of those factors in host countries that most directly substitute for that factor, and to raise the incomes of other factors
Indicate whether the statement is true or false
Assume that black beans and rice are staples in the diet of one particular family. How could you tell if these goods were complements, substitutes, or unrelated goods?
a. If the price of black beans rose and the consumption of rice remained the same, they would be substitutes. b. If the price of black beans rose and the consumption of rice increased, they would be substitutes. c. If the price of black beans rose and the consumption of rice decreased, they would be substitutes. d. If the price of black beans rose and the consumption of both goods remained the same, they would be complements. e. There is no way to determine whether these goods are complements, substitutes, or unrelated goods.