If a new insect invasion devastates crops all across the United States, which of the following would most likely occur in the short run?
a. Unit costs would decrease and the economy would move upward along the aggregate supply curve.
b. Unit costs would increase and the aggregate supply curve would shift downward.
c. Unit costs would increase and there would be movement along the aggregate supply curve.
d. Unit costs would decrease and the aggregate supply curve would shift upward.
e. Unit costs would increase and the aggregate supply curve would shift upward.
E
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A gross estate is all of the taxable assets of a person at the time of death.
A. True B. False C. Uncertain
As a source of funds for nonfinancial businesses, stocks are relatively more important in
A) the United States. B) Germany. C) Japan. D) Canada.
If Second National Bank has more rate-sensitive liabilities then rate-sensitive assets, it can reduce interest rate risk with a swap that requires Second National to
A) pay fixed rate while receiving floating rate. B) receive fixed rate while paying floating rate. C) both receive and pay fixed rate. D) both receive and pay floating rate.
Moral hazard can be a problem in lending since lenders share __________ in the __________ risk
A) proportionately; upside B) proportionately; downside C) disproportionately; upside D) disproportionately; downside