Banks act as an intermediary between savers and borrowers by determining the:
A. quantity of funds that will be saved depending on the price.
B. quantity of funds that will be borrowed, for any given quantity of savings.
C. price at which the quantity of funds saved will be equal to the quantity invested.
D. price at which the quantity of funds saved will be more than enough for those who want to borrow.
Answer: C
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A) 17.25 utils. B) 22.5 utils. C) 90 utils. D) 460 utils.
Who can create valuable output out of idle property?
(a) labor (b) entrepreneurs (c) tenants making rental improvements (d) all of the above
The demand for a product is likely to be more elastic:
a. the smaller the share of the total budget spent on the product. b. when more complementary products are available. c. in the short run than in the long run. d. when more good substitutes for the product are available.
During the Great Depression of the 1930s, unemployment peaked at _____%
a. 5 percent b. 10 percent c. 20 percent d. 25 percent e. 30 percent