Bank capital has both benefits and costs for the bank owners. Higher bank capital ________ the likelihood of bankruptcy, but higher bank capital ________ the return on equity for a given return on assets
A) reduces; reduces
B) increases; increases
C) reduces; increases
D) increases; reduces
A
Economics
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If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then consumer surplus will be
A) $0. B) $8 million. C) $9 million. D) $16 million.
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Explain why privatization can help the economy become more efficient
What will be an ideal response?
Economics
Since its inception in 1913, there have been many revisions to the income tax code.
A. True B. False C. Uncertain
Economics
As wealth increases in the economy, we would expect to observe
A) bond prices and interest rates both rise. B) bond prices and interest rates both fall. C) bond prices rise and interest rates fall. D) bond prices fall and interest rates rise.
Economics