Although the FDIC was created to prevent bank failures, its existence encourages banks to
A) take too much risk.
B) hold too much capital.
C) open too many branches.
D) buy too much stock.
A
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Switching to a faster economic growth path comes at the cost of lower
A) present investment. B) present consumption. C) future investment. D) present saving. E) future saving.
If the loanable funds market pays 8 percent and you want to earn $1,000 a year of interest income, how much in loanable funds must you supply to the market in order to accomplish this?
a. $8,000 b. $10,000 c. $14,000 d. $12,500 e. $18,000
In the Bertrand model,
A. each firm takes the quantities produced by its rivals as given. B. one firm plays a leadership role and its rivals merely follow. C. each firm takes the prices charged by its rivals as given. D. prices are higher and quantities are slightly less than we would see if the firms colluded to achieve the monopoly outcome.
If real GDP exceeds potential GDP, then employment is ________ full employment, and the unemployment rate is ________ the natural unemployment rate
A) equal to; below B) above; below C) equal to; equal to D) below; above E) above; above