A bank's assets equal its liabilities under
a. both 100-percent-reserve banking and fractional-reserve banking.
b. 100-percent-reserve banking but not under fractional-reserve banking.
c. fractional-reserve banking but not under 100-percent-reserve banking.
d. neither 100-percent-reserve banking nor fractional-reserve banking.
a
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Which of the following most closely defines the concept of poverty?
a. Poverty means that a person is morally bankrupt and thus is unworthy of social assistance. b. Poverty is a relative term describing the financial insolvency of a person. c. Poverty is a relative term and is based on the level of unemployment in the economy. d. Poverty is a relative term and is based on income considerably below the average in society.
In the open-economy macroeconomic model, the supply of loanable funds equals
a. national saving. The demand for loanable funds comes from domestic investment + net capital outflow. b. national saving. The demand for loanable funds comes only from domestic investment. c. private saving. The demand for loanable funds comes from domestic investment + net capital outflow. d. private saving. The demand for loanable funds comes only from domestic investment.
In the long run, which of the following depends primarily on the growth rate of the money supply?
a. the natural rate of unemployment and the inflation rate b. the natural rate of unemployment but not the inflation rate c. the inflation rate but not the natural rate of unemployment d. neither the natural rate of unemployment nor the inflation rate
In a competitive economy, the market system can still fail to produce the efficient level of output due to side effects called ______.
a. externalities b. subsidies c. signals d. warranties