Which of the following does not explain why the Glass-Steagall regulations lost their effectiveness?
A. Over time, nonbank financial firms were able to borrow directly from the public, rather than having to borrow from commercial banks.
B. With the advent of new financial instruments, regulated banks lost business to unregulated institutions, and credit began to flow through unregulated systems.
C. As regulations became too successful, people wanted to eliminate these regulations in order to pursue the magic of the free market.
D. The Federal Reserve created regulations that ran counter to what the government was trying to do.
Answer: D
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Chickens are not endangered because
A) there are clear property rights to them. B) government regulates chicken processors. C) there are positive externalities. D) they are free and not owned by anyone.
Using the ZZ/Y and NX graphs, illustrate graphically and explain what effect an increase in government spending will have on output, exports, imports, and net exports. Clearly label all curves and clearly label the initial and final equilibria
What will be an ideal response?
Macland can produce 150 sweaters or 75 bushels of rice. Microland can produce 50 sweaters or 50 bushels of rice. What country has a comparative advantage in rice?
a. Macland and Microland can produce rice at the same opportunity cost. b. Macland can produce rice at a lower opportunity cost. c. Microland can produce rice at a lower opportunity cost. d. Microland can produce rice at a higher opportunity cost
The marginal cost of serving an additional user of a public good is zero
a. True b. False Indicate whether the statement is true or false