The process in which people seeking higher yielding securities take their funds out of the banking system thus restricting the amount of funds banks can lend is called
A) capital mobility.
B) loophole mining.
C) disintermediation.
D) deposit jumping.
C
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Assume the marginal propensity to consume is .8 . To offset a fall in income of 1,000, the government should
a. increase taxes by $200. b. raise taxes by $250. c. increase government spending and taxes by 1,000. d. cut taxes by $200. e. both c and d.
Using potentially productive resources to try and obtain transfers from the government is called _____
a. vote trading b. logrolling c. agenda control d. rent seeking
A dramatic and sustained increase in oil prices would most likely:
a. increase demand-pull inflation. b. decrease demand-pull inflation. c. increase cost-push inflation. d. decrease cost-push inflation.
The longer any price change lasts over time, the
A. more difficult it is to alter quantity demanded. B. the more quickly quantity demanded will return to its original level. C. more quantity demanded will change. D. the longer the short-run equilibrium will continue to be the short-run equilibrium.