Even a bank in good financial health can fail if there is a run on the bank
a. True
b. False
A
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An increase in aggregate demand is most likely to be caused by a(n) ________.
A. decrease in the tax rates on household income B. increase in real interest rates C. decrease in expected returns on investment D. decrease in government spending
The demand for money increases and the demand curve for money shifts rightward as a result of
A) an increase in real GDP. B) a decrease in the price level. C) a decrease in the nominal interest rate. D) an increase in the use of credit cards. E) a decrease in the real interest rate.
Which of the following accept deposits from or sell shares to the general public?
i. money market funds ii. thrift institutions iii. commercial banks A) i only B) ii only C) iii only D) Both ii and iii E) i, ii, and iii
Examining data on cyclical unemployment plotted against unanticipated inflation shows
A) a positive relationship. B) a negative relationship. C) no significant relationship. D) a relationship only during the 1960s.