Financial intermediaries are best described as:
a. informal institutions that provide funds to the government to manage budget deficits.
b. institutions that accept deposits and make loans.
c. institutions that control the money supply in the economy.
d. institutions that provide financial aid to foreign countries.
e. individuals who manage other's investment portfolios.
b
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Use the following graph for a market to answer the question below.
Which of the following could not explain the indicated increase in equilibrium price from P1 to P2?
A. an increase in production costs B. an increase in consumer incomes C. an increase in the price of a substitute product D. a decrease in the price of a complementary product
Identify the correct statement about a corrective tax. a. Equilibrium occurs at a lower market price after the tax is imposed
b. The social cost curve lies below the private cost curve in the absence of the tax. c. A market becomes allocatively efficient after the tax is imposed. d. The socially optimal level of output is more than the market equilibrium output in the absence of the tax.
Which of the following decreases during recessions?
a. real GDP b. unemployment c. layoffs and consumer spending d. layoffs but not consumer spending
Refer to the given graph. A movement from a to b along C 1 might be caused by a(n):
A. recession.
B. wealth effect of an increase in stock market prices.
C. increase in income tax rates.
D. increase in real GDP.