If the FDIC eliminated its insurance program for deposits, then
A. banks would probably hold fewer reserves.
B. individual depositors would have more incentive to ascertain the soundness and solvency of the bank.
C. moral hazard would be increased.
D. the banking system would probably fail.
Answer: B
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Country A's GDP per capita in the beginning of 2005 was $22,150. In the beginning of 2006, it increased to $27,600. Calculate country A's growth rate of GDP per capita between 2005 and 2006
What will be an ideal response?
GPDI is ________ volatile than total consumption spending
A) much more B) slightly more C) slightly less D) much less
If AC > p where MR = MC
A) firms earn positive profits and new firms will enter. B) firms earn negative profits and existing firms will leave. C) firms earn zero profits and new firms will not enter and no existing firms will leave. D) None of the above.
When a government spends more than it earns in revenue, we say that it has a:
A. budget surplus. B. budget deficit. C. budget crisis. D. federal debt.