A financial intermediary's main function is to match ________ with excess funds to ________ with a shortage of funds
A) firms; insurance companies B) savers; borrower
C) borrower; savers D) governments; households
B
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Which of the following "quotations", according to chapter 23, best summarizes Keynes conclusions about the lessons of the depression for the nature of capitalism?
a. "It is in determining the volume, not the direction, of actual employment that the existing system has broken down.". b. "An economic system that forgets to find work for millions of men and women, cannot be trusted to perform any task in an intelligent fashion.". c. "The depression is essentially a problem of reliance on a private banking system for the provision of an inherently public good, money.". d. "The rules of sound finance, namely stable prices and balanced budgets, apply as much to the present crisis, as they do in more pleasant times.".
The chain store paradox of an incumbent who accommodates a finite stream of potential entrants threatening to enter sequentially numerous markets illustrates
a. backwards induction b. the unraveling problem c. subgame perfect equilibrium d. best reply responses e. all of the above
The short-run macro model is used most often to determine changes in
a. nominal output b. net output c. gross output d. financial output e. real output.
The two sectors of the economy in the simple circular flow model are
A. households and businesses. B. foreign markets and domestic markets. C. the private sector and the public sector. D. the employed and the unemployed.