Which of the following is not a reason for the downward slope of the aggregate demand curve?
A. Real balances effect
B. Interest-rate effect
C. Net exports effect
D. Government spending effect
Answer: D
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The Federal Home Loan Bank Board and the FSLIC, both of which failed in their regulatory tasks, were abolished by the
A) Competitive Equality Banking Act of 1987. B) Financial Institutions Reform, Recovery and Enforcement Act of 1989. C) Office of Thrift Supervision. D) Office of the Comptroller of the Currency.
Investment banks are vulnerable because
A) the maturity of their liabilities is less than the maturity of their assets. B) the maturity of their assets is less than the maturity of their liabilities. C) they tend to be underleveraged. D) they tend to primarily hold short-term assets.
High gasoline prices give people all of the following incentives EXCEPT
A) to drive less. B) to car pool. C) to buy a hybrid car. D) to take vacations that require driving more miles.
Figure 8.3 shows demands and costs for a monopolistically competitive firm. When the firm's demand curve shifts from D1 to D2 and to D3:
A. the firm's economic profit remains the same. B. the firm's marginal revenue at the profit-maximizing output level is decreasing. C. the firm's marginal cost at the profit-maximizing output level is increasing. D. the firm's average cost at the profit-maximizing output level is decreasing.